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Describe new growth theory.Explain how it differs from neoclassical growth theory.
ROE
Return on Equity (ROE) is a financial ratio that measures the profitability of a company relative to shareholder equity.
Times Interest Earned Ratio
A financial ratio that measures a company's ability to meet its debt obligations, calculated as earnings before interest and taxes divided by interest expense.
Financial Statements
Documents detailing a company's financial performance, including balance sheets, income statements, and cash flow statements.
P/E Ratio
Price-to-Earnings Ratio, a valuation metric comparing the current share price of a company to its per-share earnings, used to evaluate if the stock is overvalued or undervalued.
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