The Return on Common Shareholders' Equity Is Calculated by Dividing

question 137

Multiple Choice

The return on common shareholders' equity is calculated by dividing profit

• A)by ending common shareholders' equity.
• B)by average common shareholders' equity.
• C)less preferred dividends by ending common shareholders' equity.
• D)less preferred dividends by average common shareholders' equity.

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Definitions:

Benevolents

Individuals who exhibit a disposition to do good and to act with kindness and charity.

Equity Ratio

A financial metric that measures the proportion of a company’s total assets that are financed by shareholders' equity, indicating financial stability.

Frederick Taylor

A mechanical engineer who founded the scientific management movement, emphasizing efficiency, labor productivity, and systematic organization of work.

Management And Labor

The dynamic relationship and interactions between the administrative or executive levels of an organization (management) and the employees or workforce (labor).