--%>
Assignment Help - homework help

Explain Return on Equity or ROE

Return on Equity (ROE): The amount of net income returned as a percentage of share-holders equity. The return on equity measures a corporation's profitability by revealing how greatly profit a company produces with the money share-holders encompass invested.

ROE is stated as a percentage and computed as:

Return on Equity = Net Income/Shareholder's Equity

Net income is for full fiscal year (that is, before dividends paid to common stock holders however after dividends to favored stock.) Shareholder's equity does not comprise preferred shares.

Also termed as "return on net worth" (abbreviated as RONW).

   Related Questions in Financial Accounting

  • Q : Explain Control of Cash Explain Control

    Explain Control of Cash. Illustrate briefly.

    		•
  • Q : Abatement The process of allocating the

    The process of allocating the arrears of estate assets to the distributions. Distributions from the estate proceed in a particular order starting with specific legacies, effusive legacies, general legacies, and finally residuary legacies. If legacies assets are not capable to meet the will's prov

    		•
  • Q : Categories under budgets are divide

    Write down the chief categories under which budgets are divided?

    		•
  • Q : Forecast future and forward exchange

    It is extremely difficult in order to forecast future exchange rates more precisely as compared to forward exchange rate or to the current spot exchange rate, as per the researchers. How these findings can be interpreted?

    		•
  • Q : Concessionary loan with APV model State

    State nature of the concessionary loan and explain how it is handled within the APV model?

    		•
  • Q : Transaction and Economic exposure

    Define transaction exposure and explain how it is different from the economic exposure?

    		•
  • Q : Digital Image Processing Homework Using

    I am just trying your services to get one very small project done for Digital Image Processing Homework Using Matlab.I need the code and the approach of the code.The Homework is :A. Import a color image.B. Convert color image to gray-level image.C. create

    		•
  • Q : Incremental cash flows of capital

    Describe what you mean by the incremental cash flows of a capital project.

    		•
  • Q : Creative thinking & Problem solving

    General Instructions: In composing your responses to all tasks, please use full sentences and pay careful attention to spelling, grammar, punctuation, and clarity of expression. Both the content of your work and its present

    		•
  • Q : Theory of comparative advantage Specify

    Specify the considerations that could bound extent to which theory of the comparative advantage is practical?

    		•