Return on Equity Explained | FinShort#69

Equity Shares

{:("16,000 Equity shares ₹ 10 each (fully paid )","1,60,000"),("10 % Preference share capital (fully paid )","1,00,000"),("Reserve ans surplus","6,40,000"),("Profit after tax","2,37,500"):} Caluculated Return on Equity Shareholder's Funds ,

How does 'Trading on Equity affect the Capital structure of a company? Explain with the help of a suitable example.