Which of the following best defines the term return on equity (ROE) ?
A) The weighted average of the costs of debt and equity.
B) Net income after interest and taxes divided by average common shareholders' equity.
C) Use of a WACC that is unique to a particular project.
D) Performance measure based on WACC.
E) Base case net present value of a project's operating cash flows plus present value of any financing benefits.
Correct Answer:
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