What is the "simple" formula for ROE? Would we prefer this number to be larger or smaller to make shareholders happy? ROE = assets/equity; smaller numbers would make shareholders happy ROE = assets/equity; larger numbers would make shareholders happy ROE = NI/equity; smaller numbers would make shareholders happy ROE = NI/equity; larger numbers would make shareholders happy

What is the "simple" formula for ROE? Would we prefer this number to be larger or smaller to make shareholders happy? ROE = assets/equity; smaller numbers would make shareholders happy ROE = assets/equity; larger numbers would make shareholders happy ROE = NI/equity; smaller numbers would make shareholders happy ROE = NI/equity; larger numbers would make shareholders happy

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter16: Capital Structure Decisions

Section: Chapter Questions

Problem 11MC: What is the value of Ls stock for volatilities between 0.20 and 0.95? What incentives might the...

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		ROE = assets/equity; smaller numbers would make shareholders happy
		ROE = assets/equity; larger numbers would make shareholders happy
		ROE = NI/equity; smaller numbers would make shareholders happy
		ROE = NI/equity; larger numbers would make shareholders happy