Question
A pension fund-sponsored company used debt to repurchase
equity, leveraging its balance sheet. RBC (Return on Equity) jumped from 12% to 18%. However, ECB (Economic Profit) remained unchanged. What does this imply?Solution
Rising ROE due to higher leverage reflects financial engineering, not necessarily improved economic profit. Since Economic Profit remains flat, the increased ROE is due to value transfer to equity holders via debt, not higher business profitability.
In March 2022, Katalin Novak was elected as the first-ever female _____________ of Hungary.
Under AI Pragya, how many youth are to be trained in AI, ML, and data technologies?
What is the goal of the 'Panchayat Se Parliament 2.0' program?
What is the expected employment generation by FY 2027–28 due to the additional MSME beneficiaries, based on the current average employment per MSME?
Ms. Prabha Atre is conferred one of the highest civilian Awards of the country, Padma Vibhushan. She is related to which field?
Which international digital meeting was co-chaired by India and Viet Nam in 2026?
What was the winning throw distance by Damneet Singh in the Men’s Hammer Throw at the 4th South Asian Senior Athletics Championships 2025?
What is the total capacity of renewable energy projects to be developed in Rajasthan as part of the ₹3 trillion agreement signed with the UAE?
On which date did the first shipment of cowpea seeds to Fiji depart from Delhi?
How many UN Member States were included in the Honour Roll after clearing their dues promptly?
