3. ROE : Easy Availability of Capital
Businesses increase debt exposure
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@reshwallaja
4. ROE: When Interests Rates Go Up
The Same Operational Efficiency Will Yield Rather Unattractive Results
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@reshwallaja
5. ROE: When Interests Rates Go Up…
Businesses with high debt will be “stressed”
Interest
Rate
ROA
ROE
Debt
Assets
@reshwallaja