Chaney Inc.wants to measure the relationship between profitability and the investment made by stockholders.Chaney should use
A)return on common stockholders' equity.
B)earnings per share.
C)return on sales.
D)The statement of retained earnings.

Question

Quizplus · Accepted Answer

Return on common stockholders' equity is the best choice as it measures the profitability of the company in relation to the investment made by common stockholders. It gives an idea of how well the company is utilizing the funds invested by the stockholders.