Examlex
Why does an external cost lead to inefficient overproduction?
Retained Earnings
The portion of net income not distributed to shareholders but reserved by the company to reinvest in its core business or to pay debt.
Du Pont Identity
A financial analysis framework that breaks down Return on Equity (ROE) into three component parts—profit margin, asset turnover, and financial leverage—providing insights into a company's operational efficiency.
ROE
Return on Equity, an indicator of financial efficiency determined by dividing the net income by the equity of shareholders.
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