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ERIC Number: EJ1058551
Record Type: Journal
Publication Date: 2010
Pages: 4
Abstractor: As Provided
Reference Count: 10
ISSN: ISSN-1942-2504
The Calculation of ROE: Pedagogical Issues and Integrative Opportunities
Heinfeldt, Jeff; Rindler, Denise
American Journal of Business Education, v3 n9 p23-26 2010
One of the most widely used measures of firm profitability and stockholder return is return-on-equity (ROE). However, depending upon an individual firm's financial decisions (for example, dividend policy) and an analyst's assumptions used for the ROE calculation, the results can vary significantly. This variation can create confusion for students when the topics of ratio and financial statement analysis are presented. This paper seeks to clarify these issues, offers suggestions to improve the topic discussion in the classroom, and provides examples of additional opportunities for interdisciplinary application.
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Publication Type: Journal Articles; Reports - Descriptive
Education Level: Higher Education; Postsecondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A