economicz

In equity, when calculate RI, it actually use previous year ending to get this year's earning (NI), it implys to use Equity(t-1).

in FSA, the answer of some question Equity(t) and NI (t) to get ROE.....


revisor Wrote:
-------------------------------------------------------
> When in doubt, refer to CFA text Volume 2 (ratios
> are presented justbefore the readings begin). I
> think ROE was defined as NI(t) divided by AVERAGE
> ROE in t (end and beginning values in t)