Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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What is the "simple" formula for ROE? Would we prefer this number to be larger or smaller to make shareholders happy?
ROE = assets/equity; smaller numbers would make shareholders happy
ROE = assets/equity; larger numbers would make shareholders happy
ROE = NI/equity; smaller numbers would make shareholders happy
ROE = NI/equity; larger numbers would make shareholders happy
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