The importance of ‘Trading on Equity’ lies in the fact that if the company is earning
more profit, it can make use of borrowed capital and preference share capital and
by doing so, it can increase the income of:
a. Preference Shareholders
b. Lenders
c. Equity Shareholders
d. Government
more profit, it can make use of borrowed capital and preference share capital and
by doing so, it can increase the income of:
a. Preference Shareholders
b. Lenders
c. Equity Shareholders
d. Government