In real sense, ordinary shareholders are the real owners of the company. They assume the highest risk in the company. (Preference share holders have a preference over ordinary shareholders in the payment of dividend as well as capital. Preference share holders get a fixed
Calculate return on equity share capital
Return on equity is the amount of net income returned as a percentage of shareholders equity. Return on equity measures business profitability by enlightening how efficient its management is at making the most of the capital and assets at hand.