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12th Class Business Studies Financial Management Question Bank Financial Management (Long)

  • question_answer
    Explain the term ‘Trading on Equity’. Why, When and How it can be used by a business organisation?               Or How are shareholders likely to gain with a loan component in the capital employed? Explain with a suitable example.                                                                                                                                                                                    [AI 2011, Foreign 2011, CBSE Sample Paper 2011] Or How does 'trading on equity' increase the return on equity shares? Illustrate with a suitable example.                  [HOTS]

    Answer:



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