Since Common Stockholders Are the True Owners, Preferred Stockholders' Dividends

question 116

Multiple Choice

Since common stockholders are the true owners, preferred stockholders' dividends are deducted from net income before computing _____.

• A) the debt ratio
• B) the current ratio
• C) return-on-equity
• D) earnings per share

---

Definitions:

Dependent Variable

The variable in an experiment that is expected to change in response to variations in the independent variable.

Reaction Time

The interval of time between the presentation of a stimulus and the initiation of the muscular response to that stimulus.

Language Acquisition

The process by which humans acquire the ability to perceive, comprehend, and produce language, usually in early childhood.

Vocabulary

The collection of words known and used by a person in a particular language, fundamental to effective communication and comprehension.