--%>
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 Due Diligence Due Diligence: 1.

    Due Diligence:1. General: Assess of prudence, accountability, and diligence which is expected from, and ordinarily exercised by, a reasonable and prudent person beneath the situations.

  • Q : Security returns Security returns are

    Security returns are found to be less correlated across various countries rather than within the country. Explain Why?

    		•
  • Q : Success and failure of the employees

    What are the reasons for the success and failure of the employees ?

    		•
  • Q : Capital budgeting analysis State some

    State some of the problems which may enter into capital budgeting analysis in case project debt is computed rather than borrowing capacity made by the project?

    		•
  • Q : Accounting Required parts are clearly

    Required parts are clearly describes at the end of the questions and additional resource contains the journal article related to question three.. Approx 2000 word assignment.. First Question is of not more than 1000 words to make memorandum and its example is given at end of assignment and require

    		•
  • Q : What is Internal Communication Internal

    Internal Communication: Employee or Organizational Communication refers to the phenomenon of interaction among employees that exist in organizations. In other words, it could also be termed as Internal Communications.

    Q : Calculation of weighted average cost of

    Calculation of weighted average cost of capital: Under this following steps are undertaken: 1. Record amount in respect of various long term resources of firm. 2. Add up the amo

    		•
  • Q : Procedure of bringing new international

    Describe the procedure of bringing the new international bond issue to the market.

    		•
  • Q : Types of shares What are types of

    What are types of shares issued by a company

    		•
  • Q : Policy issued by upper management What

    What would you do when upper management issues a new policy and it was problematic to you? Would you pursue the new policy?

    		•