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Which of the Following Is the Formula for Computing Return

Question 35

Multiple Choice

Which of the following is the formula for computing return on equity?


A) (Net income - total assets) / Average common stockholder's equity
B) (Net income - preferred dividends) / Average common stockholders' equity
C) (Net income + total assets) / Average common stockholders' equity
D) (Net income + interest expense) / Average common stockholder's equity

Correct Answer:

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