Return on Equity Is a Ratio That

question 38

Multiple Choice

Return on equity is a ratio that:

• A) is calculated by dividing profit plus preferred dividends by average common shareholders' equity and shows the relationship between profit available for common shareholders and average common shareholders' equity.
• B) shows the relationship between net earnings and average shareholders' equity.
• C) cannot be calculated if the company has preferred shares in addition to common shares.
• D) is calculated by dividing profit plus preferred dividends by average common shareholders' equity.

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Definitions:

Equitable Remedy

A court-ordered remedy tailored to address a particular harm or legal violation, including injunctions and specific performance, emphasizing fairness over monetary compensation.

Demonstration

A public gathering of people to display support for or opposition against policies, actions, or causes, usually in a peaceful manner.

Tort Of Deceit

A legal wrong that involves intentionally making false representations to another, causing harm.

Rescission

Rescission is the legal act of canceling or terminating a contract, returning all parties involved to their positions before the contract was entered into.