标题: 为什么repurchase share using selling asset会increase ROE [打印本页] 作者: katheee 时间: 2013-5-22 22:58 标题: 为什么repurchase share using selling asset会increase ROE
sale of asset , A decrease
repurchase share, treasury stock increase
ROE = NI/S x S/A x A/E
isnt treasury stock part of Equity? why A/E where A decrease, and E increase?
financial leverage should decrease? right?
why does it increase instead?作者: katheee 时间: 2013-5-22 23:01
and if using less equity to fund money(less shares outstanding), isn't it intuitive to have financial leverage decrease?作者: katheee 时间: 2013-5-23 03:33
nevermind... just realized Treasury stock is a reduction from Equity account
