Tata sons has debt equity ratio of $4 : 1$ and Bajaj has $1 : 1$ debt equity ratio. Name the advantage, Tata sons may have over Bajaj.

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Solution

Trading on equity

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Tata sons have a debt-equity ratio of 4:1 and Bajaj has 1:1 debt-equity ratio. Name the advantage, Tata sons may have over Bajaj.

Tata sons have debt-equity ratio of 4:1 and Bajaj has 1:1 debt-equity ratio.___ is the advantage, Tata sons have over Bajaj.

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