Q288
A formula such as net income available to common stockholders divided by common equity is used to calculate
A.
return on earning power
B.
return on investment
C.
return on common equity
AnswerD.
return on interest
Answer: Option C
Solution
Answer: Option C
Solution:
A formula such as net income available to common stockholders divided by common equity is used to calculate return on common equity. The Return on Common Equity (ROCE) ratio refers to the return that common equity investors receive on their investment.