The Computation of Return on Equity,or ROE,does Not Include Retained

question 36

True/False

The computation of return on equity,or ROE,does not include retained earnings as part of common equity because retained earnings includes all net income for the company since its inception and analysts are trying to calculate the return for just the current year.

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Definitions:

Indentured Servitude

A labor system where a person is bound to work for another for a specified period of time, often in exchange for transportation, the acquisition of land, or training.

Revolutionary Rhetoric

The use of language and persuasion to encourage or incite change, often associated with overthrowing an existing system or establishment.

Improperly Deprived

Refers to situations where individuals or entities are unjustly or illegally denied of their rights, privileges, or possessions.

Slave Property

Refers to the historical practice in which individuals were considered the legal property of others and forced into slavery.