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Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
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| Questions Answered: | 66690 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
One of Warren Buffett’s acquisition criteria is to invest in businesses “earning good return on
equity.” The return on equity (ROE) formula uses both net income and stockholders’ equity.
Why is it important to relate net income to stockholders’ equity? Why isn’t it sufficient to merely
concentrate on companies with the highest net income?
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