The values of all posts in a company's balance sheet stays the same throughout some following periods.
Fantastic news! We've Found the answer you've been seeking!
Question:
The values of all posts in a company's balance sheet stays the same throughout some following periods.
All income posts and costs posts also remain the same throughout the periods except from the interest costs.
The tax rate remains the same.
How will the return on equity and return on total capital be affected if the interest costs increases from the first period to the second period?
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date: