0
The rate earned on stockholders' equity will be less than the return on assets if the company has significant debt, as interest expenses reduce net income without affecting total assets. Additionally, if the company's return on investment is lower than the cost of debt, the overall return on equity will be diminished. Therefore, high leverage can lead to a lower rate of return for equity holders compared to the overall asset performance.
What else can I help you with?
What is the difference between return on equity and return on net worth?
Return on equity is the rate of returns you earned on your equity investments Return on net worth is the rate at which your entire property is growing (Your net worth is the sum of all your assets - all your liabilities)
What ratios are stockholders interested in?
# The current ratio # return on equity # dividend rate # Gross Margin # Net income margin # qurterly and annual growth ratios
Rate of Return on Common Stockholders Equity?
The average rate of return on common stocks is around 15% On years when the market is in Bull phase the returns may go up to even 30% or more On years when the market is in bear phase or recession the returns maybe negative.
Where can one find home equity loans at fixed rate?
There are many places where one can find home equity loans at fixed rate. On the websites "bankrate" or "zillow" one can find home equity loans at fixed rate.
What banks offer the lowest rate home equity loans?
There are two banks that offer the lowest rate home equity loans. These two banks that offer low rate home equity loans are RBC and The Bank of America.
The tendency of the rate earned on stockholders' equity to vary disproportionately from the rate earned on total assets is sometimes referred to as?
Leverage
How is the tendency of the rate earned on stockholders' equity to vary disproportionately from the rate earned on total assets is sometimes referred to?
I believe this is known as leverage.
What is numerator of rate earned on common stockholders equity ratio is equal to?
The numerator of the rate earned on common stockholders' equity ratio is the net income attributable to common shareholders. This figure represents the profit generated by the company after all expenses, taxes, and preferred dividends have been deducted, reflecting the earnings available to common equity holders. This ratio is used to assess the profitability and efficiency of a company in generating returns for its common shareholders.
How is the accounting rate of return on stockholders investments measured?
return on equity
What is the difference between return on equity and return on net worth?
Return on equity is the rate of returns you earned on your equity investments Return on net worth is the rate at which your entire property is growing (Your net worth is the sum of all your assets - all your liabilities)
The accounting rate of return on stockholders investments is measured by?
The accounting rate of return stockholders investments is measured by?
What ratios are stockholders interested in?
# The current ratio # return on equity # dividend rate # Gross Margin # Net income margin # qurterly and annual growth ratios
Rate of Return on Common Stockholders Equity?
The average rate of return on common stocks is around 15% On years when the market is in Bull phase the returns may go up to even 30% or more On years when the market is in bear phase or recession the returns maybe negative.
What is the average equity rate for homes?
The average home equity rate for 2012 was 5.21%, the forecast rate for 2013 is 5.21%. Equity rates on homes are typically higher than those on primary mortgages as equity loans are considered second mortgages.
Where can one find home equity loans at fixed rate?
There are many places where one can find home equity loans at fixed rate. On the websites "bankrate" or "zillow" one can find home equity loans at fixed rate.
What banks offer the lowest rate home equity loans?
There are two banks that offer the lowest rate home equity loans. These two banks that offer low rate home equity loans are RBC and The Bank of America.
What's the going rate on a private equity loan?
The going rate on a private equity loan depends on the lender. Usually this rate is related to the prime interest rate with an additional percentage markup.
