Return on Equity Is a Ratio That

question 49

Multiple Choice

Return on equity is a ratio that:

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

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Definitions:

Object Persistence

The property of an object to continue existing even when it is not being perceived or observed.

Piaget's Theory

A theory of cognitive development that describes how children's intellectual abilities evolve through four stages from infancy to adolescence.

Vygotsky's Theory

A theory that emphasizes the fundamental role of social interaction in the development of cognition, suggesting that community and culture play central roles in the process of making meaning.

Cognitive Development

The process by which a person's ability to think, reason, and understand the world around them evolves over time.