What Kind of Information Does the Rate of Return on Common

question 126

Multiple Choice

What kind of information does the rate of return on common stockholders' equity provide?

• A) What proportion of each dollar of sales revenue generates net income
• B) How much profit a company generates relative to its stockholders' equity
• C) How much profit each shareholder makes when he sells his shares of stock
• D) How much merchandise is returned by customers

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Definitions:

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