Which of the following independent actions could the directors take during 20X9 to achieve this?

The directors of AB want to reduce the entity’s gearing ratio in the year to 31 December 20X9.

Which of the following independent actions could the directors take during 20X9 to achieve this?
A . Recognise the valuation surplus on AB’s property, plant and equipment.
B . Issue cumulative preference shares.
C . Issue redeemable preference shares.
D . Switch AB’s fixed interest bearing borrowing to a lower variable rate borrowing.

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Answer: A