Investors seeking to analyze how executive management is performing and how much a company is earning relative to book value turn to a profitability ratio known as return on equity. From an ...

One of the many metrics that investors use when evaluating a company is return on ... its shareholder equity. While this ...

Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, and has a degree in accounting and finance from DePaul University. Return on equity (ROE) is a strong measure of how ...

The cost of equity formula is a financial metric that represents the return investors expect for holding a company's stock. This formula can help you evaluate whether a company's stock is ...

To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment. The result is expressed as a percentage or a ratio ... investment (ROI) formula is as follows ...

Cost of Equity = ($2 / $50) + 4% = 0.04 + 0.04 = 8% In this case, the cost of equity is 8%, indicating that investors expect an 8% return based on the company's dividend payments and anticipated ...

In fact, if you open the fund factsheet of any equity mutual fund ... Here is how the Sharpe formula looks like. Sharpe Ratio = {(Return on the Fund – Risk-Free returns) / Standard deviation ...

One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article ...

While some investors are already well versed in financial metrics (hat tip), this article is for those who would ...