Explain the term 'Trading on Equity'. Why, When and How it can be used by a business organisation?
Answers
Answered by
0
Answer:
Trading can be use. In any form therr are various form for trading
Answered by
1
Answer:
Trading on equity refers to the increase in profit earned by the equity shareholders due to presence of fixed financial charges. When the rate of earning or Return on Investment (ROI) of a company is higher than the rate of interest on borrowed funds only then a company should opt for trading on equity.
Similar questions