If a firms ROE is low and management wants to improve it, explain how using more debt

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If a firm’s ROE is low and management wants to improve it, explain how using more debt might help. Could using too much debt prove detrimental?

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Essentials of Managerial Finance

ISBN: 978-0324422702

14th edition

Authors: Scott Besley, Eugene F. Brigham

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Question Posted: Apr 24, 2018 08:22 AM

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If a firms ROE is low and management wants to improve it, explain how using more debt

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ROE can be written Total assets divided by owners equit...View the full answer

Essentials of Managerial Finance

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