• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA Books

Books for Sept'23 ACCA exams : Get your discount code >>

New! Ask ACCA AI Tutor

Post your questions
& get instant answers

Disadvantage of ROE

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Disadvantage of ROE

  • This topic has 3 replies, 2 voices, and was last updated 1 year ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • August 18, 2022 at 7:24 am #663346
    maximus07
    Participant
    • Topics: 446
    • Replies: 437
    • ☆☆☆☆

    Professor I am unable to get this disadvantage of ROE
    “it is sensitive to gearing levels – ROE will increase as gearing ratio increases.”

    I am unable to figure connection.
    If gearing will increase so finance costs will increase, ultimately, causing drop in Profit Attributable to shareholders. This should decrease ROE so how it is saying increase in gearing increases ROE.

    August 18, 2022 at 7:28 am #663350
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 53175
    • ☆☆☆☆☆

    I do not know who is saying it or why they are saying it 🙂

    August 18, 2022 at 11:38 am #663361
    maximus07
    Participant
    • Topics: 446
    • Replies: 437
    • ☆☆☆☆

    Professor, this disadvantage is written in Kaplan Text.
    Thank you.

    August 18, 2022 at 12:46 pm #663366
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 53175
    • ☆☆☆☆☆

    I do not have the Kaplan text and I do not know the context in which they have written it.

    From memory the exam has never asked about disadvantages of ROE – certainly not in the last 15 years!

    My lectures cover everything needed to be able to pass the exam well (and if you are watching the lectures you do not really need the Study Text. It is the Exam Kit that is essential, however you choose to study.)

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA Qualification syllabus changes for 2023/24

Need verifiable CPD for 2023? 21 units of FREE CPD on offer from ACCA

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

PQ Magazine

Latest comments

  • caali94 on Inventory and IAS 2 Valuation of Inventory – Example 5 – ACCA Financial Accounting (FA) lectures
  • John Moffat on Process Costing – Introduction – ACCA Management Accounting (MA)
  • John Moffat on Measures of dispersion – ACCA MA
  • Anjana on Process Costing – Introduction – ACCA Management Accounting (MA)
  • rajesh.chandnani1@gmail.com on Chapter 12 – Capital Gains Tax – Individuals – ACCA Taxation (TX-UK) lectures

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in