The Numerator of the Rate Earned on Common Stockholders' Equity

question 137

Multiple Choice

The numerator of the rate earned on common stockholders' equity ratio is equal to

• A) net income
• B) net income minus preferred dividends
• C) income before income tax
• D) operating income minus interest expense

---

Definitions:

Hormone

Chemical messenger, produced in one part of the organism, that controls the activity of other tissues or organs in that organism.

Hypothalamus

A region of the brain that controls many bodily functions, including hunger, thirst, temperature regulation, and the release of many hormones.

Anterior Pituitary

Portion of the pituitary gland that is controlled by the hypothalamus and produces six types of hormones, some of which control other endocrine glands.

Arterial Duct

A blood vessel in a fetus that connects the pulmonary artery to the descending aorta, allowing most of the blood to bypass the fetus's developing lungs.