The question "Did the common stockholders receive an adequate return on their investment?" is answered through the use of
A) liquidity ratios.
B) profitability ratios.
C) coverage ratios.
D) leverage ratios.

Question

Quizplus · Accepted Answer

The question is specifically asking about the return on investment for common stockholders which is related to profitability. Therefore, the best choice would be profitability ratios such as return on equity or earnings per share. Liquidity ratios, coverage ratios, and leverage ratios do not directly address the question of whether common stockholders received an adequate return on their investment.

The Question "Did the Common Stockholders Receive an Adequate Return