23.1Holding all other factors constant, which of the following situations will most likely lead to an increase in a company’s return on equity?
A. The market price of the company’s shares increases.
B. Net income increases at a slower rate than shareholders’ equity.
C. The company issues debt to repurchase outstanding shares of equity.
C is correct.
A company’s ROE will increase if it issues debt to repurchase outstanding shares of equity.
为什么股票回购会导致ROE公式的分母equity减少？
