Cold Brew Common Mistakes *You* Would Never Make. 1  1. Using the *Good* Beans. 2  2. Grinding the Beans Too Fine. 3  3. Using the Wrong Ratio.  4. Freaking Out about the Water 1  Temperature. 5. Not Diluting the Concentrate.  6. Storing it Too Long in the 1  Fridge. Keep the caffeine train going with these iced coffee  hacks.
A company can improve its return on equity in a number of ways, but here are the five most common. 1. Use more financial leverage. Companies can finance themselves with debt and equity capital. By increasing the amount of debt capital relative to its equity capital, a company can increase its return on equity. We'll use a (fictional) lemonade stand as an example for how the use of debt can increase a company's return on equity.
The company's Retained Earnings line item will rise on its balance sheet, and that figure directly feeds into overall stockholder equity. By contrast, if a company pays out all of its profits to shareholders as dividends, then stockholder equity won't change. The rise in cash from the company's earnings will be offset by the use of that cash to pay dividends, and there will be no net change in retained earnings. The other reason: raising capital. The other situation in which stockholder equity goes up is when a company obtains additional equity financing by selling stock.