The Formula for Computing the Rate of Return on Common

question 54

Multiple Choice

The formula for computing the rate of return on common stockholders' equity is

• A)(net income + interest expense)/ average total assets.
• B)(net income - preferred dividends)/ average common stockholders' equity.
• C)net income / net sales.
• D)(net income - preferred dividends)/ number of shares of outstanding common stock.

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Definitions:

Philanthropic Marketing

Involves promotional strategies that aim to improve a company's image by supporting social causes, charities, or community events.

Corporate Philanthropy

Involves companies undertaking initiatives to promote welfare through donations and community involvement.

Ethical Marketing

Marketing practices that adhere to ethical standards and values, prioritizing fairness, honesty, and responsibility towards consumers and society.

Stakeholder Responsibility

The obligation of an organization to act in the best interests of the diverse group of individuals or groups who have a stake in the business outcomes, including employees, customers, suppliers, and the community.