7. So, therefore as an investor you are likely to feel encouraged to invest in A rather than B
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10. So…. ROCE is an appropriate measure to get an idea of the overall profitability of the company's operations while RONW is an appropriate measure for judging the returns that a shareholder gets on his investment Hence successful investors like Warren Buffet assign more importance to a company’s RONW to understand their investment growth potential
11. Hope you have now understood the concept of RONW In case of any query please email to hmasurkar@tataamc.com