Chartered Financial Analyst Level 1
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An analyst gathers the following information (in € millions) about a company before any revaluations:
- Average total assets: 20
- Average total liabilities: 8
- Average total equity: 12
An initial revaluation increases the carrying value of an asset under the revaluation model (ignoring taxes). The financial leverage ratio will most likely:
An analyst gathers the following information (in € millions) about a company before any revaluations:
- Average total assets: 20
- Average total liabilities: 8
- Average total equity: 12 An initial revaluation increases the carrying value of an asset under the revaluation model (ignoring taxes). The financial leverage ratio will most likely:
Exam-Like
A
Decrease.
52.2%
B
Remain unchanged.
26.1%
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