Return on Equity
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Return on equity is the return generated by the company for each dollar of shareholder investment. This is a way to determine how effectively the shareholder's investment is being employed by the company. | ||
Additional Comments:
Return on equity is calculated by dividing the annual earnings by common shareholders equity, which is equal to total assets minus total liabilities
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Related Terms: | ||
Common Stock Ratio The percentage that common stockholders' equity reduced by intangible assets bears to total tangible capitalization (the ... Annualized return The return on investment calculated on a full-year basis, meaning increasing the rate if held ... Compound Return The return on investment (ROI) including reinvested dividends used to purchase additional partial shares, so that ... |
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