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- UID
- 223422
- 帖子
- 295
- 主题
- 5
- 注册时间
- 2011-7-11
- 最后登录
- 2014-8-4
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I dont see what the issue is, the answer is clearly correct
if the firm takes on preferred stock or debt it is commiting to make a payment, it is becoming levered, things go good, great ROE is multiplied, things go bad...the @#$%& will multiply...
on the other hand if it takes on more stock, it would become less levered....
say it had 1$ debt, 1$ stock, well if it took on 1 more in stock, the effect of debt becomes less... |
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发表于 2011-7-11 19:26
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