The Return on Equity Ratio Is Calculated As

question 30

Multiple Choice

The return on equity ratio is calculated as:

• A) dividends paid divided by the average book value of stockholders' equity.
• B) net income divided by the average number of outstanding common shares.
• C) dividends divided by the average number of total shares.
• D) net income divided by average stockholders' equity. Return on equity = Net income/Average stockholders' equity.

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