Question
A firm uses 70% debt financing at 10% interest. Its ROE
rises despite flat operating profits. What explains this phenomenon?Solution
Increased ROE without rise in EBIT indicates positive financial leverage—use of debt to magnify returns to equity.
What is the reason behind changing the name of the Nehru Memorial Museum and Library Society to the Prime Ministers' Museum and Library Society?
Regarding the U.S. legislation for the Indian Ocean Region, which statements are accurate?
1. The strategy includes provisions for promoting coop...
Recently National Skill Development Corporation (NSDC) signed a MoU with which automobile company to train 18,000 students in three years?
Under the new Sugar (Control) Order, 2025, what is the minimum crushing capacity for khandsari units to come under regulation?
What percentage of incremental deposits in September 2024 were contributed by metropolitan branches, as per the RBI Quarterly BSR-2 report?
Lavani is a traditional dance of which of the following states?
The ‘INSPIRE’ program extends the existing perks, including preferential interest rates, priority banking services, and doorstep banking facilities,...
Who inaugurated Bharat Telecom 2025 in New Delhi?
The aluminum coating process is known as:
Recently, which public sector bank has announced the introduction of Real-Time Xpress Credit on its digital platform?
