You are writing a book on how to evaluate performance evaluation for a company.

• Think about some of the influences and measures of company performance that you read about this week.
• Explain the use of return on assets (ROA) and the price-to-earnings (PE) ratio in evaluating the performance of a company.
• Explain how to calculate ROA and PE ratio and how market conditions can affect these metrics.
• Share the ROA and PE ratio for a company you are familiar with. What do these metrics tell you about the financial health of the company?