Return on Common Stockholders' Equity Is Calculated As

question 57

Multiple Choice

Return on common stockholders' equity is calculated as:

• A) net income ÷ weighted average common shares outstanding.
• B) (net income - preferred dividends) ÷ average common stockholders' equity.
• C) weighted average common shares outstanding ÷ net income.
• D) average common stockholders' equity ÷ (net income - preferred dividends).
• E) operating income ÷ average common stockholders' equity.

---

Definitions:

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over competing ones.

Positive Reinforcement

A technique in behavior management that increases the likelihood of a behavior by following it with a desirable outcome or reward.

American Core Values

Fundamental beliefs or principles that are widely accepted and upheld within American society, such as freedom, equality, and democracy.

Attitudes

Psychological tendencies expressed by evaluating a particular entity with some degree of favor or disfavor.