Favorite Financial Ratios for Investors
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If you were an investor in a firm what ratio's would you be particular concerned about? What concerns would you have (if any) concerning the accounting records that the ratio's are based on? How would you provide yourself with additional confidence?
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Solution Summary
Response discusses why return on shareholder's equity is the favorite financial ratio for investors in 139 words.
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The return on shareholder's equity is calculated to know see the profitability of owner's investment. It helps company to know how well the firm has used the resources of the owners. This information is of important interest to shareholders. The company's ROE can be compared with ...
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