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

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

katheee

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