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Return on tangible equity
Return
on
tangible
equity
measures
the
rate of return
on the
tangible common equity
.
ROTE
is computed by dividing
net earnings
applicable to common
shareholders
by
average
monthly
tangible common
shareholders' equity
.
Tangible
common shareholders' equity
equals
total shareholders' equity less
preferred stock
,
goodwill
, and
identifiable
intangible assets
.