Net Income Plus Preferred Dividends Divided by Average Common Equity

question 48

True/False

Net income plus preferred dividends divided by average common equity is referred to as rate of return on common equity.

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Definitions:

Inference Forms

Patterns or templates of reasoning that show the logical connection between premises and conclusion.

MP

An abbreviation that could refer to Modus Ponens, a logical form where from premises of the form "If P, then Q" and "P", it's concluded that "Q".

MT

Another term for Modus Tollens, it is the form of logical argument implying the inverse of a conclusion based on the negation of its consequence.

HS

An abbreviation often referring to Hypothetical Syllogism, a logical argument form using two conditional statements to deduce a conclusion.