sales update, page-20

mvanle,

The definition of "Total Return" in your examples quoted from the ComSec website is different from ROE (return on equity). So it won't work.

If you click on the word "Total Return" in the ComSec pages you copied, you will find a window giving the definition as follows

"Total Shareholder Return -
"The annualised return to shareholders, including all price changes and reinvestment of dividends. It includes the effect of bonus issues and splits. This figure is calculated pre-tax."

So it's not the same thing as "ROE" at all we are talking about.

A quick TESTfor the ROE x EQPS = EPS identity can find at

http://www.asx.com.au/resources/podcast/library/investor_hour070801.pdf

which is a slide show titled "Investment for permanent gain" by Roger Montgomery.

In page 6, under the column of "Year 1" in the table, it says,

Equity $10
ROE 20.00%
Earnings $$2.00

Plainly this confirmed definition of

ROE = Earnings / Equity = $2.00/$10.00 = 20.00%

And in return it also confirms the identity

EPS = ROE x EQPS = 20.00% x $$10 = $2.00

End of the TEST.

Any more "symantics" (sic) ?

By the way, doesn't "Roger Montgomery" sound familiar to you? I reckon certainly it does, because he is the head of the team of StockVal, from which you have spent quite a bit of money for the software in the past year!

http://www.stockval.com.au/

Shouldn't you wake up now!