Class, refer to pages 93, 95, 102, 103, 109, and 110. Brealey, Myers, and Marcus (2023) shared the computation and explanation of return on equity. As Talisha shared in the post, we are in the business of breaking even or making a profit. The return on equity is one of many computations that help us determine profitability. In addition, it communicates how efficiently we broke even or made a profit. Therefore, as future leaders, we want to know the minimum criterion to measure our ability to profit efficiently. The return on equity is one of the computations. Return on Equity (ROE) = Net Income/ Average Equity The denominator for the return on equity is the average equity. Which of the four financial statements have equity (balance sheet, income statement, equity, and cash flow)? Yes, the balance sheet and equity statement have equity. We will look at the balance sheet for our class because I am attempting to review topics. The first topic is the return on equity. The second topic is the Weighted-Average Cost of Capital. We may use the balance sheet to discuss the return on equity and Weighted-Average Cost of Capital (Brealey et al., 2023; Bishal, Bhagwat, &