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:

Extinction

In psychology, the gradual weakening and eventual disappearance of a conditioned response when the conditioned stimulus is repeatedly presented without the unconditioned stimulus.

CR Fading

A technique in classical conditioning by which the conditioned response (CR) is gradually weakened by presenting the conditioned stimulus (CS) without the unconditioned stimulus (US).

Habituation

A decrease in response to a stimulus after repeated presentations, indicating a basic form of learning.

Generalization Fading

A technique used in behavior therapy where a learned response to a specific stimulus is gradually applied to a broader range of similar stimuli.