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 Return On Equity |
Return On Equity †
Return on equity measures the return, expressed as a percentage, earned on a company's common stock investment for a specific period. It is calculated by common stock equity, or a company's net worth, into net income. The calculation is performed after preferred stock dividends and before common stock dividends. The figure shows investors how well—how effectively—their money is being used by managers.
† ©CBS MarketWatch
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