Which of the following shows the relationship between net income available to common shareholders and average common equity?
A) Net income
B) The rate of return on total assets
C) Inventory turnover
D) The rate of return on common stockholders' equity

Question

Quizplus · Accepted Answer

The rate of return on common stockholders' equity shows the relationship between net income available to common shareholders and average common equity. It indicates how much profit is earned for each dollar of common equity invested by the shareholders.

Which of the Following Shows the Relationship Between Net Income