Net income divided by average common stockholders' equity is the calculation for the
A) ratio of net sales to assets.
B) return on total assets.
C) return on common stockholders' equity.
D) earnings per share.

Question

Quizplus · Accepted Answer

Dividing net income by average common stockholders' equity gives the return on common stockholders' equity. This ratio shows the percentage return that a company has generated for its common shareholders' equity.

Net Income Divided by Average Common Stockholders' Equity Is the Calculation