Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Management

Question:
Which of the following involves increasing the proportion of debt and preference shares in total capital?
Options:
Trading on equity
Capital Budgeting
Financing decision
Financial Analysis
Correct Answer:
Trading on equity
Explanation:
Trading on Equity refers to the increase in profit earned by the equity shareholders due to the presence of fixed financial charges like interest