Trading on the equity is likely to be a good financial strategy for stockholders of companies having:

Question

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Trading on equity is a strategy where a company prefers to use debt and other financial instruments to raise capital instead of issuing new shares. It is usually a good strategy for companies that can generate steady amounts of earnings. A stable and consistent stream of earnings reduces the risk of default on the borrowed debt and increases the chances of obtaining favorable terms for credit. Therefore, stockholders of companies having steady amounts of reported earnings would benefit from trading on equity.

Trading on the Equity Is Likely to Be a Good