If a company has a strong rate of return on common stockholders' equity, that is an indication of strong profitability.

Name: If a company has a strong rate of return on common stockholders' equity, that is an indication of strong profitability.
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A strong rate of return on common stockholders' equity means that the company is generating a high level of profits in relation to the amount of money invested by common stockholders. Therefore, it is an indication of strong profitability.

If a Company Has a Strong Rate of Return on Common