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melvin_dh | 16:30 Thu 01st Sep 2005 | Business & Finance
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If a firm ROE is low and management wants to improve it, explain how using more debt might help?
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Avatar Image Harley
Return on equity measures the business profit to shareholder stake ratio.If by borrowing money and icreasing debt the business can use those borrowings to improve profitability then the ratio will improve.
20:50 Sat 03rd Sep 2005

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