Asked by Tamerea Downey on Jul 25, 2024
Verified
Provide a definition for return on equity (ROE).
Return on Equity
A financial ratio that measures the ability of a firm to generate profits from its shareholders' equity.
Net Income
The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.
Shareholders' Equity
The residual interest in the assets of a company after deducting its liabilities; also referred to as stockholders' equity.
- Scrutinize the outcomes of financial actions on a company's risk and return configuration.
Verified Answer
Learning Objectives
- Scrutinize the outcomes of financial actions on a company's risk and return configuration.
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