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:

Input

Information or signals entering a system or process for evaluation, storage, or further processing.

Stirrup

A small, U-shaped bone in the middle ear that plays a critical role in the process of hearing by transmitting sound vibrations to the inner ear.

Oval Window

is a membrane-covered opening at the base of the stapes bone in the middle ear that transfers sound vibrations from the middle ear to the cochlea of the inner ear.

Eardrum

A thin membrane that separates the outer ear from the middle ear and vibrates in response to sound waves.