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Homework answers / question archive / Trading on the equity refers to: (a) the cost of debt exceeding the return on assets
Trading on the equity refers to:
(a) the cost of debt exceeding the return on assets.
(b) the after-tax cost of debt being lower if the tax rate is lower.
(c) the return on assets being greater than the after-tax-cost of debt.
(d) unfavorable financial leverage.