The ________ measures the return on owners' (both preferred and common stockholders) investment in the firm.
A) net profit margin
B) price/earnings ratio
C) return on equity
D) return on total assets

Question

Quizplus · Accepted Answer

Return on equity measures the return on investment for both preferred and common stockholders in the firm. It is calculated by dividing net income by average shareholders' equity.

The ________ Measures the Return on Owners' (Both Preferred and Common