Simplify the Complex Fraction

question 131

Multiple Choice

Simplify the complex fraction.

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Definitions:

Retained Earnings

The portion of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business or to pay debt.

Shareholders' Equity

The residual interest in the assets of an entity after deducting liabilities, reflecting ownership value.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue.

Return on Common

A measure of the profitability relative to shareholders' equity, specifically for common stockholders.