If a company increases debt and buys back shares with it, the interest expense associated with using debt represents a fixed cost that reduces net income. However, the lower net income value is spread over a smaller base of equity capital (due to the buyback share repurchases), resulting in an increased ROE.
If you want to change selection, open original toplevel document below and click on "Move attachment"
|status||not read|| ||reprioritisations|
|last reprioritisation on|| ||suggested re-reading day|
|started reading on|| ||finished reading on|