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.

Trading on equity

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Solution

The correct option is A
Trading on equity

Trading on equity is the advantage, Tata sons have over Bajaj.

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Similar questions

4 : 1

1 : 1

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.

A company with a debt-to-equity ratio of 2.5:1 and Rs 15,00,000 of shareholders' funds has debt of ________

Higher debt equity ratio (Debt/Equity) results in Equity

(\frac{D e b t}{E q u i t y})

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