The Formula for Computing Return on Equity Is

question 138

Multiple Choice

The formula for computing return on equity is:

• A) (net income less interest expense)/average shareholders' equity
• B) (net income less preferred dividends)/average common shareholders' equity
• C) (net income plus preferred dividends)/shareholders' equity at the end of the period
• D) (net income plus interest expense)/average common shareholders' equity

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Definitions:

Corporate Ladder

A metaphorical hierarchy within a business organization that employees ascend as they gain promotions and responsibilities.

Interviewer Illusion

The tendency for interviewers to overestimate their ability to evaluate interviewees accurately, often leading to biased judgments.

Face-To-Face Conversations

Direct communication between people in the same location, allowing for immediate feedback and nonverbal cues.

360-Degree Feedback

A performance appraisal system where an employee receives feedback from all stakeholders, including superiors, peers, and subordinates.