The Proper Denominator to Use in Computing Return on Common

question 77

Multiple Choice

The proper denominator to use in computing return on common equity is

• A) Beginning total shareholders' equity, including both common and preferred shares
• B) Beginning total shareholders' equity, including common but not preferred shares
• C) Average total shareholders' equity, including both common and preferred shares
• D) Average total shareholders' equity, including common but not preferred shares

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Definitions:

Accused

A person or group that is charged with a crime or accused of wrongdoing.

Unreasonable Claim

A statement or assertion that lacks logic, evidence, or is beyond what is considered fair or sensible.

Rejecting

The act of refusing to accept, submit to, believe, or make use of something.

Customer

An individual or entity that purchases goods or services from a business.