Problem:
When expanding and investing in projects overseas as my company (BELL TECH, USA) has planned to, it is very important to understand such things as return on equity (ROE) and internal rate of return (IRR).
I need you to help me (you can use the websites listed below and other internet resources) gather information on ROE and IRR explaining each of these terms and the advantages and disadvantages of using them when selecting projects to invest in overseas.
- Return on Equity vs. Return on Capital: https://invest-faq.com/articles/analy-roe-vs-roc.html
- Return on Equity Definition: https://www.fool.com/investing/beginning/return-on-equity-an-introduction.aspx
- Keep Your Eye on the ROE:- https://www.investopedia.com/articles/fundamental/03/100103.asp#axzz1a4spgl4T
- IRR Example:- https://www.computerworld.com/s/article/78524/ROI_Guide_Internal_Rate_of_Return?taxonomyId=074
Select two companies from the same industry.
Use the annual report information available on the company's websites and compute the ROE for each company.