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According to Warren Buffetts strategy, Companies can increase their return on equity by increasing their long-term debt-to-equity ratio. Buffett is aware of this, but the

According to Warren Buffetts strategy, Companies can increase their return on equity by increasing their long-term debt-to-equity ratio. Buffett is aware of this, but the idea of adding a couple of points to Berkshire Hathaway's return on equity simply by taking on more debt does not impress him.

Which equation do we use to explain this concept? Write out the equation.

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