You will be amazed what this does to you rate of return on equity.

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The bank has a return on equity rate of 10.4% in fiscal 2011, and a return on assets rate of 0.60% in 2011.

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Because the dividends on Laffer Shares would vary depending upon GDP growth rates, the markets would discount the expected cash flows at an equity rate of return, which is considerably higher than the interest rate on government bonds.

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