Kumonekta sa mga eksperto at makakuha ng mga sagot sa IDNStudy.com. Alamin ang mga detalyadong sagot mula sa mga bihasang miyembro ng aming komunidad na sumasaklaw sa iba't ibang paksa para sa lahat ng iyong pangangailangan.

briefly explain the role of financial leverage in affecting returns on equity​

Sagot :

Answer:

Impact on Return on Equity

At an ideal level of financial leverage, a company's return on equity increases because the use of leverage increases stock volatility, increasing its level of risk which in turn increases returns. However, if a company is financially over-leveraged a decrease in return on equity could occur.

Explanation:

hope it helpss:))