The capital and reserves of Lamb, a limited liability company, are as follows:
                                                           $m
10% Loan notes                                 80
Ordinary share capital                        100
Share premium account                      60
Retained earnings                               80
What is the company’s gearing ratio?
A   80/100 = 80%
B   80/180 = 44·4%
C   240/80 = 300%
D   80/320 = 25%

D