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What measure of profitability is probably of greatest interest to the investing public?
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∙ 9y ago
roe
Wiki User
∙ 9y ago
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What is the greatest customary unit to measure capacity?
Probably the cubic megaparsec.
What is the greatest rectangular are you can completely enclose with 100 feet of fencing?
That would probably be a 25x25 square with an area of 625 square feet.
How do you answer the interest problem about math?
The first thing you have to do is read the problem, so that you know what information it gives you, and you understand what it's asking you. We need the same facts before we can do anything with it, and you haven't told us anything. The only guess we can make from what you've given us is that it's probably a math problem about interest, not an interest problem about math.
What is the small print for a ge creditline?
The small print is on the contract. It is probably some stipulations about how long you can be overdrafted and about the card having 22% interest compounded monthly or something like that.
What is the least and the greatest number that round to 3400 when rounded to the nearest thousand?
3000
Which of the following bonds has the greatest interest rate price risk?
There is no bond specified. Probably the one with the greatest maturity.
What is the name of a book you can purchase to learn more about online investing?
You can purchase many different types of books on online investing, the simplest and most common will probably be the "Investing for Dummies" series.
How does a fall in the real interest rate affect consumption decisions?
The interest rate is basically the price of money. The main concept behind the interest rate when thinking about consumption decisions is opportunity cost. In terms of the household, if the interest rate is high the opportunity cost of consumption is high because the rate of return for investing is high. Prospectively, the household could have much more purchasing power if the household would invest rather than consume. If there is a higher interest rate consumption will probably go down as more people will invest more because the returns to investment will be higher. It will depend on if the household values consumption now more than consumption later, if the goods and services they need at the present is worth more than how much they will receive in the future through investment. If the interest rate is low the opportunity cost of consumption is low because the rate of return for investing is low. There will be very little value lost to consumption now because the household will get very little from investing when there is a low interest rate.
How much interest will be charged on my loan if I repay before interest becomes due?
If you repay your loan before the interest comes due you will be probably be paying no interest on your loan. You will probably only be paying off the principal.
What is personal finance investing used for?
Personal finance investing is used for building capital. This capital may then be used to provide an income - possibly right away but more probably to secure an income in retirement.
What is Adolf Hitler's greatest defeat?
the battle of stalingrad would probably be the greatest defeat.
What was probably the US's Greatest Advantage?
War
Is Elvis the greatest singer?
Yes, probably
How do you use probabilities when investing in the stock market?
This way... If you gamble with the stock market, you will "Probably" lose everything you have. But... if you invest wisely, you will "Probably" prosper, and so will your children. Cheers
Anomalies of sexual life?
Probably the age or interest . . .
Why will a boy not go out with you?
He probably has a girlfriend or does not see interest in you.
Why is it unnecessary to technically adjust return on assets for net interest expense and return on equity for preferred dividends?
It depends. With ratio analysis it is important to consistently apply the ratio over time and/or across companies. The unadjusted ROA ratio is computed as net income divided by assets, while the adjusted ROA ratio is NOPAT divided by assets. (NOPAT = net income plus net interest expense after tax). Many people would say the NOPAT based ROA is a better measurement of the profitability of the assets, since the cost of debt is excluded. In other words, the way the assets are financed does not affect the profitability of the assets. Most likely, when analyzing a firm's profitability over time, both ratios will show the same trend. In this sense it probably doesn't matter much which ratio is used. A similar reasoning can be applied to return on equity (ROE). Preferred shares legally qualify as equity, but economically often behave like debt. An adjusted ROE (with subtracting preferred dividends from income and dividing by the number of common shares outstanding) will more closely reflect the 'true' profitability of common equity. If used in practice, both regular ROE and adjusted ROE will probably give similar insights into the firms profitability. (From a statistical point of view the two measures of ROE are highly correlated.)
