Which of the Following Describes the Return on Equity Ratio

question 34

Multiple Choice

Which of the following describes the return on equity ratio?

• A)[Net income + interest expense × 1 - tax rate))] ÷ average common shareholders' equity
• B)[Net income - preferred shares] ÷ average common shareholders' equity
• C)[Net income + preferred dividends] ÷ common shareholders' equity
• D)[Net income - preferred dividends] ÷ average common shareholders' equity

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Definitions:

Subordinate

An individual who is lower in rank or position and typically reports to a supervisor or manager within an organizational hierarchy.

Internal Attribution

The process of ascribing the cause of a person's behavior to internal characteristics, such as personality or disposition, rather than to external factors.

Insufficient Ability

The lack of necessary skills or competencies required to perform a task or meet objectives effectively.

Close Monitoring

The act of carefully and continuously observing or reviewing a situation, process, or individual's performance.