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प्रश्न
Name the concept of financial management which increases the return to equity shareholders due to the presence of fixed financial charges.
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उत्तर
The concept of financial management which increases the return to equity shareholders due to the presence of fixed financial charges is called trading on equity. When the rate of earning of the return on investment of a company is higher than the rate of interest on the borrowed funds only then a company should adopt for trading on equity.
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संबंधित प्रश्न
What is meant by financial management?
Answer the following question.
State the objective of ' Financial Management '.
Define current assets? Give four examples of such assets.
The cheapest source of finance is
Which of the following statement is false regarding financial management?
For optimal procurement of funds, a finance manager identifies different available sources and compares those items in terms of cost and associated risks. Identify concept highlighted in the above lines.
Which of the financial decisions is about the quantum of finance to be raised from various long-term sources?
Financial management helps in reducing what?
What does financial management enable in relation to funds?
Financial management keeps control on which risk?
What is the primary objective of financial management?
How is maximisation of shareholders' wealth achieved?
Shareholders' wealth is reflected in what?
Which examples are Fixed Assets?
Which examples are Current Assets?
What does a decision about Procurement of funds address?
Which items affected by financial management decisions appear in the Balance Sheet?
