ou are a research analyst for a publicly traded company, and you’ve been assigned to give a presentation on how a company uses performance metrics in corporate valuation. Respond to the following in a...

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ou are a research analyst for a publicly traded company, and you’ve been assigned to give a presentation on how a company uses performance metrics in corporate valuation.






Respond to the following in a minimum of 175 words:



  • Think about how you would present return on equity (ROE) and earnings per share (EPS) to a group of investors or senior management.

  • Explain the use of ROE and EPS in evaluating the value of a company. Include how to calculate ROE and EPS.

  • Why is understanding ROE and EPS important to a company’s value?

  • Share an example of a company whose ROE and EPS you calculated. What do these results say about the company?

Answered Same DayMar 05, 2021

Answer To: ou are a research analyst for a publicly traded company, and you’ve been assigned to give a...

Sumit answered on Mar 05 2021
151 Votes
1.
Return on Equity (ROE) means the return that the equity investors get on investing in the compa
ny. For example, If an Invests $100 in a company and has ROE of 18%, that means that on the $100 invested by the investor, the investor will earn $18. Since this is the return the investor will get by investing in the company it is very important criteria for an investor before investing in the company. The formula is as under:
Net Income / Shareholders Equity
Earnings Per Share...
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