CSL 0.02% $295.21 csl limited

The effects on net assets depends on what you do with the...

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    The effects on net assets depends on what you do with the borrowed cash. Immediately after the transaction, net assets haven't changed - in the example you used Cevatt, borrowings increased by 100K but you also have 100K in cash to balance that. If you put that 100K into the house and its value increases by 100K, then net assets remain unchanged.

    If CSL invest their borrowings to create value greater than the borrowed amount, then net assets will increase over time.
 
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