What kind of information does the rate of return on common stockholders' equity provide?
A) What proportion of each dollar of sales revenue generates net income
B) How much profit a company generates relative to its stockholders' equity
C) How much profit each shareholder makes when he sells his shares of stock
D) How much merchandise is returned by customers

Question

Quizplus · Accepted Answer

The rate of return on common stockholders' equity provides information on how much profit a company generates relative to its stockholders' equity. It is a ratio that measures the return earned by stockholders on their investment in the company.

What Kind of Information Does the Rate of Return on Common