View source for Return on common equity

[[Return on common equity]] (also known by its acronym, [[ROE]]) is a ratio found by dividing net income by common equity.


==Definitions==
According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]],
:[[Return on common equity]] ([[Return on common equity|ROE]]). Found by dividing net income by common equity.

==Related concepts==
*[[Financial management]]. A combination of [[enterprise effort]]s undertaken in order to procure and utilize monetary resources of the [[enterprise]].

==Related lectures==
*[[Introduction to Financial Management]]. 

[[Category: Financial Management]][[Category: Articles]]