Examlex
Which of the following capital budgeting models is most likely to be used if a company's goal is to maximise their operating profit?
Earning Per Share
A financial metric that represents a portion of a company's profit allocated to each outstanding share of common stock, showing a company's profitability per share.
Total Equity
The sum of shareholders' equity in a company, representing the total value of the company's assets that would remain after settling all of its debts.
ROE
Return on Equity, a financial ratio indicating the profitability of a company by showing the amount of net income returned as a percentage of shareholders equity.
Coefficient
A numerical or constant quantity placed before and multiplying the variable in an algebraic expression.
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