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Company DEF has a net income of $1 million and total equity of $6 million. Calculate its return on equity (ROE) and discuss its interpretation

Company DEF has a net income of $1 million and total equity of $6 million. Calculate its return on equity (ROE) and discuss its interpretation in assessing financial performance. Explain the return on equity (ROE) as a measure of a company's profitability and efficiency in generating returns for its shareholders. Discuss the significance of ROE in evaluating financial leverage, operational efficiency, and shareholder value creation.

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