1
Q
Return on equity calculation?
A
(Firm’s net earnings - preferred dividends) / common equity dollars in the company
2
Q
(Firm’s net earnings - preferred dividends) / common equity dollars in the company
A
Return on equity calculation?
3
Q
Why is ROE useful?
A
For shareholders who want to know how profitable their capital is in the business they invest in
4
Q
For shareholders who want to know how profitable their capital is in the business they invest in
A
Why is ROE useful?
5
Q
Why is a higher ROE useful?
A
The better the company is at generating profits
6
Q
The better the company is at generating profits
A
Why is a higher ROE useful?
Investing Tips
flashcards
Decks in class (41)
# Cards
-
Working Capital Ratio11
-
Quick Ratio11
-
Earnings per Share (EPS)6
-
Price-Earnings Ratio10
-
Debt-Equity Ratio16
-
Return on Equity (ROE)6
-
Price-to-book Ratio16
-
Free Cash Flow12
-
Ascending Triangle10
-
Volume10
-
Options15
-
Futures8
-
Candlesticks10
-
Bonds17
-
Acquisitions and Mergers16
-
Profit12
-
Operating Margin10
-
Cash Expenses8
-
Short Interest6
-
Market Sentiment16
-
EBITDA12
-
Liquidity16
-
Consumer Cyclicals20
-
Austerity14
-
Fiat Money16
-
Aggregate Demand10
-
Aggregate Demand Curve10
-
Consumer Surplus10
-
Information Ratio10
-
Largest ETFs (1)10
-
Largest Cryptocurrencies (1)10
-
Stock Market Sectors (1)20
-
Stock Market Sectors (2)20
-
Types of profit12
-
Profitability Ratio Calculations20
-
Leverage Ratio Calculations10
-
Efficiency Ratio Calculations14
-
Liquidity Ratio Calculations (1)20
-
Liquidity Ratio Calculations (2)10
-
Multiple Valuation Ratio Calculations22
-
Multiple Valuation Ratio Calculations (2)10
