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Which method should be used to solve the system? Explain your answer, including a description of the first step.
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Return on Equity
A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently equity is used to generate profits.
Capital Employed
The total amount of capital used for the acquisition of profits by a firm or project, typically represented by the value of all assets minus current liabilities.
Financial Leverage
The use of borrowed funds to increase the potential return on investment, often measured by the ratio of a company’s debt to equity.
Financial Leverage
Financial leverage refers to the use of borrowed funds to increase the potential return of an investment, amplifying both potential gains and losses.
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