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.
Who lives on the same floor with A?
Four of the following five are alike in a certain way and hence form a group. Which of the following does not belong to the group?
Statements:
A < B ≥ C > U = W; R < Q > L ≤ W = Y; Q > P
Conclusions:
I. B < P
II. C > R
Six persons D, E, F, G, H, and I live in a six- floor building. The bottommost floor is numbered as 1 and the topmost floor is numbered as 6. Two person...
How many persons sit between Sonu and Sunny?
Four of the following five are alike in a certain way and hence they form a group. Which one of the following does not belong to that group?
Five persons, G, U, Y, K and C, live in a five-storey building such that bottommost floor is numbered as 1 and the floor immediately above it is numbere...
Six persons L, M, N, O, P, and Q live in a six- floor building. The bottommost floor is numbered as 1 and the topmost floor is numbered as 6. M lives tw...
Number of boxes above A is same as the number of boxes below which of the following box?
E is living on which of the following floors?
