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QUESTION # 5. Private enterprises exist to benefit the owners (stockholders/shareholders) of the company. ROE is a major yardstick for measuring the performance of the

QUESTION # 5. Private enterprises exist to benefit the owners (stockholders/shareholders) of the company. ROE is a major yardstick for measuring the performance of the firm. Why is it then that the stock price of many companies with very low ROE is high and rising, and companies with high ROE see the price of their stock falling?

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