Business Studies, asked by rajdas23218, 8 months ago

Explain the term 'Trading on Equity'. Why, When and How it can be used by a business organisation?​

Answers

Answered by AneeshRaj
0

Answer:

Trading can be use. In any form therr are various form for trading

Answered by nivabora539
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