Return on equity (ROE) can be estimated using financial statements (book value) or financial market data (market

Question:

Return on equity (ROE) can be estimated using (book value) or financial market data (market value). The book value of ROE over an accounting period is earnings after tax divided by owners’ equity. The market value of ROE is the return that an investor would have experienced during the same period. It is the difference in share price plus paid during the period divided by the share price at the beginning of the period. Why are the two ratios different? If the market ROE is more relevant to any investor, what is the use of the book ROE?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...