Week 2 - Finance 571 Management Coursework Research (Coursework Sample)
Respond to the following in a minimum of 175 words and citations for full credit:
Think about how you would present return on equity (ROE) and earnings per share (EPS) to a group of investors or senior management.
Explain the use of ROE and EPS in evaluating the value of a company. Include how to calculate ROE and EPS.
Why is understanding ROE and EPS important to a company’s value?
Share an example of a company whose ROE and EPS you calculated. What do these results say about the company?
WEEK 2 - FINANCE 571
Name:
Course Number and Section:
Instructor:
Date:
WEEK 2 - FINANCE 571
RETURN ON EQUITY AND EARNINGS PER SHARE TO THE COMPANY
Presenting ROE and EPS to a group of investors or senior management
Return on Equity (ROE) and Earnings per Share are critical ratios significant to shareholders in their quest to invest in the company. According to Fuhrmann (2019), ROE provides shareholders with the view of how their company is effectively using their raised funds. It shows total profits on the equity while EPS (as the name reads) indicates the amount of earnings/profits allocated to per equity share. It is expressed as. Both are equally essential accounting ratios.
Calculating and using ROE and EPS in evaluating the value of a company
ROE is significant in assisting shareholders in comparing and contrasting the firm's profitability with the industry average. Furthermore, shareholder's equity provides an overview of management's effectiveness to use invested funds to run the company efficiently.
Other Topics:
- Improving Occupational Safety Management CourseworkDescription: Organizational Safety and Health Act (OSHA) is a body established in 1970 whose main aim is to provide every employee in the United States a good and safe working environment and to work in a healthy environment. OSHA, therefore, provides detailed and complete instructions which...7 pages/≈1925 words| 4 Sources | APA | Management | Coursework |
- The Resources Management Coursework Essay Paper Term PaperDescription: Resource planning is a process of allocating people onto the project and breaking down duties in relation to one another. Often, human resource planning takes into consideration the availability of statuses of individual resources and their level of utilization. With the current technological advancement...10 pages/≈2750 words| 3 Sources | APA | Management | Coursework |
- Boeing Workplace Diversity Management Coursework PaperDescription: Boeing is a multinational aviation company based the United States that specializes in the design and manufacture of commercial, defense, and space aircraft. The company is also engaged in the sale and servicing of its products used everywhere around the world. As a leading manufacturer...9 pages/≈2475 words| 8 Sources | APA | Management | Coursework |
