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The Role of the Accounting Rate of Return in Financial Statement Analysis.

Richard P. Brief; Raef A. Lawson

The Accounting Review 1992

Focuses on the use of the accounting rate of return (ARR) in evaluating the financial performance of companies in the United States. Relationship between accounting and economic rates of return; Derivation of accounting-based formula for the present value of a firm; Simplification with constant ARR and constant growth; Uses and limitations of derived equations in financial analysis.

DOI
10.2308/tar-9605305894
Volume
67 (2)
Pages
411-426
Language
en
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