"Perhaps more importantly, firm-wide returns on equity should also rise by ~70bps," once Morgan Stanley owns the entire brokerage unit, Hintz said. Morgan Stanley reported a modest return on equity from continuing operations of 3.6% for the fourth quarter.
Hintz estimates that Morgan Stanley will earn $2.15 a share this year, with EPS climbing to $2.60 in 2014.
-- Written by Philip van Doorn in Jupiter, Fla.
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