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.

---

Definitions:

That's-not-all Technique

A sales technique where an initial offer is made more appealing by adding something extra before the decision is made.

Bargain

An agreement between two or more parties as to what each party will do for the other, often involving negotiation on terms and conditions.

Gradual Buildup

The slow accumulation or increase of something over time.

Foot-in-the-door Technique

A persuasion strategy that involves getting a person to agree to a small request as a precursor to making a larger request.