Earning more income on borrowed money than on the related interest expense is an example of
A)trading on assets.
B)trading on equity.
C)trading on liabilities.
D)all of the above.

Question

Quizplus · Accepted Answer

Earning more income on borrowed money than on the related interest expense is an example of trading on equity, as it refers to the return on the equity portion of the investment after deducting the expense of borrowing.

Earning More Income on Borrowed Money Than on the Related