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08/11/17
21:13
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Originally posted by Paull198585
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Have a think about this How does the market price affect the shareholder? Think about from an accounting point of view how the market price and the balance sheet valuation are linked. Also re: capital structure and tax, think for a moment why some analysts like to ignore these items. Who pays these expenses? Are they imaginary and repatriated in some way? What earnings does the company have free to distribute to shareholders? What does a share of a company entitle a shareholder to? Past/future pre tax or post tax earnings? Understanding these questions is key to understanding company valuation.
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You havent explained anything, you've just asked a bunch of questions. Care to explain your reasoning as to why ROE is the best measure?