How is ROE higher with leverage?

Thanks, I understand the hard way :slight_smile:

Youโ€™re quite welcome, Caroline.

Haha it was fun to read the whole thread.

At post number 12 I was like "come on tell her the mistake directly ! "

However, it is good to use intuition, logic and understand what we are doing here. Not just receiving the correct answer.

Remember, assets are meant to produce profits! No healthy company rises debt and buy no capital assets.