## What is Return on Equity (ROE)

Return on equity = Net income ÷ Avg. shareholder equity Return on equity is also…

Return on equity = Net income ÷ Avg. shareholder equity Return on equity is also…

Doubling time with simple interest = 1 ÷ rate Doubling time for simple interest calculation…

PV factor = 1 ÷ (1 + r)n r = rate of return n =…

Total stock return = [ (P1 – P0) + D ] ÷ P0 P0 =…

Risk premium = ra – rf ra = ROI or sometime assets rf = risk-free…

CAPM = rf + βi (Rm – Rf) Rf = risk free rate βi =…

Bid Ask Spread = Ask price – Bid Price Bid ask spread formula is utilized…

Debt/Income Ratio = [debt payments ÷ gross income] Debt to income ratio tells about the…

Current yield = [Annual coupons] ÷ [Current bond price] Current yield formula is utilized to…

Retention ratio = (Net income – dividends) ÷ Net income Retention ratio is also known…