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ROE - Return On Equity - Measures the rate of return on the ownership interest
(shareholders' equity) of the common stock owners. ROE is viewed as one of the most
important financial ratios. It measures a firm's efficiency at generating profits from every
dollar of net assets (assets minus liabilities), and shows how well a company uses
investment dollars to generate earnings growth. ROE is equal to a fiscal year's net income
divided by total equity expressed as a percentage.
b. ROI - Return On Investment - Is the ratio of money gained or lost on an investment relative
to the amount of money invested...
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