Best World International has had a great run on the share market with its stock up by a significant 16% over the last three months. The formula for return on equity is: ADVERTISEMENT Return on Equity = Net Profit (from continuing operations) For every SGD1 of its shareholder's investments, the company generates a profit of SGD0.20. We now need to evaluate how much profit the company reinvests or "retains' for future growth.
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