If the total liabilities to equity ratio increase, which of the following ratio will increase 1. Return on equity 2. total liability to total equity

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Question added by Almutaz Bakry Sidahmed , Internal Audit Manager , Banan real estate
Date Posted: 2014/05/22

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by Atul Sood , Assistant Manager , EXL Service

Return on equity because after deducting all expenses, residual profit will be distributed in less number of share holders

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