It is possible for a company with low efficiency ratios to increase its ROE by taking on

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It is possible for a company with low efficiency ratios to increase its ROE by taking on debt. This works by breaking down the ROE into three components and multiplying the impact of debt on ROE. Thus, the leverage ratio is sometimes called the equity m _______ r.

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Essentials Of Accounting

ISBN: 9780273771463

11th International Edition

Authors: Leslie K. Breitner

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