Which of the following must be deducted from net income to calculate the return on common shareholders' equity?

Question

Quizplus · Accepted Answer

Dividends paid to preferred shareholders must be deducted from net income to calculate the return on common shareholders' equity because these dividends are not available to common shareholders. This calculation focuses on the earnings attributable to common shareholders after satisfying the fixed dividend requirements of preferred shareholders.

Which of the Following Must Be Deducted from Net Income