Chapter11: Venture Capital Valuation Methods
Section11.3: Earnings Multipliers And Discounted Dividends
Problem 3CC
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What does ROE measure?
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I. Meaning
Profitability ratio is referred as the financial metrics which is used by analysts as well as investors to estimate company’s ability to earn profit, revenue, operating costs and shareholder’s equity for a specific period. It indicates company’s efficiency in utilizing assets to produce profit and shareholders value.
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