Investments
Investments
11th Edition
ISBN: 9781259277177
Author: Zvi Bodie Professor, Alex Kane, Alan J. Marcus Professor
Publisher: McGraw-Hill Education
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Chapter 19, Problem 12CP
Summary Introduction

To determine: Stable after-tax return on equity(ROE) despite declining operating income and also how Jones group might able to maintain its stable after-tax ROE.

Introduction:

ROE is defined as an organization annual net income divided by the total shareholder’s equity, defined by the percentage.

It is derived for two parts and also it will bring together the income statement of the firm and balance sheet for the shareholder’s equity.

Operating income is expressed in the amplitude of income which is said to investors about amount of revenue to get at last become profit for a company.

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