The formula for the return on common stockholders' equity is a. $\frac{\text{Net Income + Preferred dividends }}{\text{ Average common stockholders' equity }}$

b. $\frac{\text { Operating income - Preferred dividends }}{\text { Average common stockholders' equity }}$

c. $\frac{\text { Net income - preferred dividends }}{\text { Average common stockholders' equity }}$

d. $\frac{\text {Operating income + Preferred dividends }}{\text { Average common stockholders' equity }}$

Question

The formula for the return on common stockholders' equity is a. $\frac{\text{Net Income + Preferred dividends }}{\text{ Average common stockholders' equity }}$

b. $\frac{\text { Operating income - Preferred dividends }}{\text { Average common stockholders' equity }}$

c. $\frac{\text { Net income - preferred dividends }}{\text { Average common stockholders' equity }}$

d. $\frac{\text {Operating income + Preferred dividends }}{\text { Average common stockholders' equity }}$

Quizplus · Accepted Answer

The Answer of The formula for the return on common stockholders' equity is a. $\frac{\text{Net Income + Preferred dividends }}{\text{ Average common stockholders' equity }}$

b. $\frac{\text { Operating income - Preferred dividends }}{\text { Average common stockholders' equity }}$

c. $\frac{\text { Net income - preferred dividends }}{\text { Average common stockholders' equity }}$

d. $\frac{\text {Operating income + Preferred dividends }}{\text { Average common stockholders' equity }}$