为什么repurchase share using selling asset会increase ROE part, why, increase, decrease, selling

katheee

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?

katheee

nevermind... just realized Treasury stock is a reduction from Equity account

katheee

and if using less equity to fund  money(less shares outstanding), isn't it intuitive to have financial leverage decrease?