Start learning →

The use of fixed-cost debt funds to increase the return to equity shareholders is known as:

Acash discounting
Bfinancial leverage (trading on equity)
Ccapital budgeting
Dworking capital management
Answer & Solution
Correct answer: B. financial leverage (trading on equity)
Financial leverage (trading on equity) uses debt to lift equity returns.
Practise this question with Quill — AP Intermediate 2nd Year →

Keep practising Financial & Marketing Management

Browse all Financial & Marketing Management questions for AP Intermediate 2nd Year, or explore more Business Studies topics.

Start a Financial & Marketing Management lesson →