问题如下:
Which of the following may increase return on equity if other variables remain the same?
选项:
A.An increase in interest expense.
B.A decrease in total asset turnover.
C.An increase in leverage.
解释:
C is correct. Both A and B will decrease ROE. However,only an increase in leverage may increase ROE.
老师,为什么leverage ratio 变大,ROE变大呀?这个ratio变大, assets变大,分母equity可能会变小呀