Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter11: Determining The Cost Of Capital
Section: Chapter Questions
Problem 7MC
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Step 1 What is ROE?
Return on equity is calculated by dividing the net profit by shareholder's equity. Shareholders' equity is calculated by deducting the outsider's liabilities from total assets.
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