Return on Equity Is a Ratio That

question 129

Multiple Choice

Return on equity is a ratio that:

• A)shows the relationship between net income available for common stockholders and average common stockholders' equity.
• B)is calculated by dividing net income plus preferred dividends by average common stockholders' equity.
• C)cannot be calculated if the company has preferred stock in addition to common stock.
• D)incorporates both A and B.

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Definitions:

Organizational Culture

The set of shared values, beliefs, and practices that influence the way an organization's members interact and work.

Appropriate System

A system that is suitable or fitting for a particular purpose, context, or need, often characterized by its effectiveness and efficiency.

Organizational Culture

The shared values, beliefs, and practices that shape the social and psychological environment of an organization.

Organizational Performance

The measure of an organization's efficiency, effectiveness, and capability of achieving its goals and objectives.