The cost of equity formula is a financial metric that represents ... companies by highlighting the expected rate of return for shareholders. Companies with a high cost of equity may face ...

Even when ROE is calculated using an average of shareholders' equity over a given period, such as a year, the formula still leans toward a short-term focus typically. In reality, the long-term ...

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In the ROE formula, the numerator is net income ... ROE = Net income / Average shareholders’ equity A company's ROE can be analyzed by comparing it to its competitors or how it has changed ...