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Required: Return on Equity (ROE) is used, and some say “abused” when measuring the financial performance of...

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Finance

Required:

Return on Equity (ROE) is used, and some say “abused” whenmeasuring the financial performance of a firm. What are yourthoughts on ROE specifically, as well as other financial ratiosgenerally, when forming an opinion on the financial performance ofa firm? Write at least 300 words.

Please don't copy from anywhere. Write in your ownwords.

Answer & Explanation Solved by verified expert
3.8 Ratings (534 Votes)
Return on Equity ROE is a measure of financial performance calculated by dividing net income by shareholders equity Since shareholders equity is a companys assets minus its debt ROE is a return on net assets The primary purpose of    See Answer
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