689FinanceMedium
A formula such as net income available to common stockholders divided by common equity is used to calculate __________?
Areturn on investment
Breturn on earnings power
Creturn on interest
Dreturn on common equity
Correct answer
D. return on common equity
Explanation
return on common equity is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.