The Return on Common Stockholders' Equity Is Computed by Dividing

question 102

Multiple Choice

The return on common stockholders' equity is computed by dividing net income

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

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Definitions:

Demand Curve

A graphical representation that shows the quantity of a product or service desired by buyers at various price levels.

Tax

Mandatory financial charges or other types of levies imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Buyers

Individuals or entities that purchase goods or services for personal use, resale, or as inputs to production.

Tax Revenue

The financial returns that governments earn from taxes.