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cyber21

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tT
发表于 2013-4-3 17:17 | 只看该作者

FRA Question from CFAI book

468, increase, because, someone
CFAI FRA book, page 468, #23
Can someone explain why the answer is B?
My thought is that if an asset is revalued upward, that would increase financial leverage because the numerator (assets) would increase.
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kim226

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2#
发表于 2013-4-3 17:20 | 只看该作者
equity is going up (keeping assets equal to liabilities) and debt is staying the same. retained earnings increase through the write up realized in the income statement.

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kd26gioi

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3#
发表于 2013-4-3 17:24 | 只看该作者
greater equity making A wrong…sorry just figured out how to edit posts

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