Question: need help on both! amplifies changes to the return on equity, as long as the return on equity is higher than the cost of additional

need help on both!
need help on both! amplifies changes to the return on equity, as

amplifies changes to the return on equity, as long as the return on equity is higher than the cost of additional debt. Leverage Depreciation High ccounts receivables Variable costs Question 20 1 pts When yo are the V.P. of Finance you decide to move assets into special purpose entities. You post the assets as new revenue and move the assets from the Balance Sheet into the special purpose entity. The special entity information is provided in the notes, but not on the Financial Statements. The stock price increases, and you get a $200,000 bonus. This is an example of manipulation, but no real harm. clever financial manipulation. agency issues. just doing your job

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