Answer states:
“Leverage increased as measured by the debttoequity ratio from 2.25 in 2005 to 3.68 in 2007”
Isn’t leverage the assettoequity ratio? Is the QBank wrong again? I feel like I’ve been catching alot of mistakes lately.作者: siavosh 时间: 2013-4-10 17:45
Ok. When they talk about leverage on the exam, what are they referring to? A/E is in ROE but D/E is in the example above.作者: Makavelim3 时间: 2013-4-10 17:45
If you use A/E on that QBank question you would have gotten the incorrect answer. That is the only problem I have with that question.作者: joehogue 时间: 2013-4-10 17:46
Probably for Level 1, we just strictly adhere Financial Leverage as A/E while Leverage as D/E.
