Return on common equity
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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 (ROE). Found by dividing net income by common equity.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
