For the electric kettle, the element will heat up, the body of the kettle will heat up, and there will be a bit of radiation from the kettle. For the stove top kettle, it is necessary to heat up a larger element. And the trivet or glass that supports the kettle. And then the body of the kettle.
The return on equity ratio or ROE is a profitability ratio that measures the ability of a firm to generate profits from its shareholders investments in the company. In other words, the return on equity ratio shows how much profit each dollar of common stockholdersâ equity generates.
ROE is less relevant if earnings are not reinvested. 1  The sustainable growth model shows that when firms pay dividends, earnings growth lowers. If the dividend payout is 20%, the growth expected will be only 80% of the ROE rate. 2  The growth rate will be lower if earnings are used to buy back shares.