Return on Common Shareholders' Equity Is a Ratio That

question 138

Multiple Choice

Return on common shareholders' equity is a ratio that

• A)is calculated by dividing profit plus preferred dividends by average common shareholders' equity.
• B)shows the relationship between profit available for common shareholders and average common 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 and shows the relationship between profit available for common shareholders and average common shareholders' equity.

---

Definitions:

Order of Operations

A mathematical principle describing the sequence in which operations should be performed to correctly solve expressions.

Negation

The logical operation that inverts the value of its operand, turning true to false and vice versa.

Point Mode

In computing, refers to a mode of operation where users select or interact with objects on the screen by clicking or tapping on them.

Entire Formula

Refers to the complete expression or calculation written in a cell in spreadsheet software.