Question

Name the concept where using the debt along equity higher returns can be earned for equity shareholders.under what conditions in this possible?​

Answer 1

Answer:

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Answer 2

Answer:

Explanation:

Trading on equity refers to an increase in earnings per share , I.e , dividend earned by the shareholders which is done b borrowing money(debt) at a lower cost. It can be done only when money can be borrowed cheaply,I.e ,when rate of interest on debt is lower than return on investment .

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