Return on Equity Is a Ratio That

question 72

Multiple Choice

Return on equity is a ratio that:

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

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Definitions:

Statement of Claim

A legal document filed in court that outlines the plaintiff's allegations against the defendant and the legal basis for the lawsuit.

Civil and Criminal Actions

Civil and criminal actions refer to the two main categories of law where civil actions deal with disputes between individuals or entities, and criminal actions involve cases brought by the state against individuals or entities for acts against society.

Convicted of a Criminal Offence

Found legally guilty of violating criminal law.

Compensated for Injury

Receiving payment or restitution for physical or psychological harm suffered due to another's negligence or wrongdoing.