Return on equity (ROE) is a financial ratio that tells you how much profit a public company earns in comparison to the net assets it holds. ROE is very useful for comparing the performance of similar ...

Considering building a second location, purchasing a company, or entering a new market? Calculating the cost of equity can ensure your investment pays off. Investors and small business owners use the ...

No, CAPM is a formula used to calculate the cost of equity—the rate of return a company pays to equity investors. For ...

The return on equity and its more expansive variant, the return on invested capital, measure what a company is making on the capital it has invested in business, and is a measure of business quality.