MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Business Studies

Investment Decision

Name the conc...

Question

Name the concept which increases the return on equity shares with a change in the capital structure of a company.

Open in App

Solution

Trading on equity increases the return on equity shares with a change in the capital structure of a company.

Suggest Corrections

thumbs-up

0

Similar questions

Q. How do loan components or debentures in the capital structure act as factor to raise the return on equity share capital?

Q. How does 'cost of equity' affect the choice of capital structure of a company? Explain.

Q. How does 'Trading on Equity' affect the Capital structure of a company? Explain with the help of a suitable example.

Q. How does "Trading on Equity" affect the choice of capital structure of a company? Explain with the help of a suitable example.

Q. A company with a paid up Capital of 5,000 equity shares of Rs.10 each has a turnover of four times with a margin of 8% on sales.
The ROI of the company will be______.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Financial Management

BUSINESS STUDIES

Watch in App

explore_more_icon

Explore more

Investment Decision

Standard XII Business Studies

Join BYJU'S Learning Program

CrossIcon