Return on Common Shareholders' Equity Is a Ratio That

question 4

Multiple Choice

Return on common shareholders' 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)cannot be calculated if the company has preferred shares in addition to common shares.
• D)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.

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