Unlike debt holders, shareholders are not guaranteed returns ... they require a greater return on equity. The cost of equity formula helps investors and companies gain insight into the return ...

The ROE formula is net income divided by shareholders' equity. So the first step to calculating ROE is to find the company's net income (or loss) for the period. This will be the last line on the ...

Then input the value of their shareholders' equity in cell B2. In cell C2, enter the formula: =A2/B2*100. The resulting figure will be the ROE expressed as a percentage. Interpreting ROE ROE is ...

Learn how to calculate earnings per share (EPS) and why it is an important gauge in determining a stock’s value and the profitability of a company.

The debt-to-equity ratio is a financial equation that measures how much debt a company has relative to its shareholders' equity. It can signal to investors whether the company leans more heavily ...

Companies use the cost of equity to assess the minimum return required on projects to satisfy shareholders and sustain investment appeal. One common formula used to calculate the cost of equity is ...

Retained earnings are a type of equity listed in the shareholders’ equity section of a company’s financial statements. Reserves and retained earnings may sound similar, but they are typically ...