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Return on Equity Is Only Computed on Common Stock Because

question 107

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Return on equity is only computed on common stock because the return to preferred stockholders is the specified dividend expressed as a percentage or a fixed dollar amount.


Definitions:

Monozygotic Twins

Twins that result from one fertilized egg splitting and developing into two embryos, genetically identical.

Dizygotic Twins

Twins conceived by the union of two different ova (or a single ovum that has split) with two different sperm cells; also called fraternal twins; they are no more alike genetically than any other siblings.

Concordance

The agreement or compatibility between traits, beliefs, or values among individuals or in data, often used in genetics and psychology to measure similarity.

Canalization

Limitation on variance of expression of certain inherited characteristics.

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