Name the concept of financial management which increases the return to equity shareholders due to the presence of fixed financial charges.
The concept of financial management which increases the return to equity shareholders due to the presence of fixed financial charges is Trading on Equity. It is advisable to use trading on equity when the rate of return on investment is more than the rate of interest payable on debentures and loans.
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Welcome to the NCERT Solutions for Class 12 Business Studies - Chapter . This page offers a step-by-step solution to the specific question from Excercise 1 , Question 3: Name the concept of financial management which increases the return to equity shareholders due to th....
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