Asked by
Yealin Santiago
on Nov 27, 2024Verified
If there is no preferred stock,the return on common equity for 2014 is (rounded) :
A) 25.8%
B) 27.9%
C) 41.4%
D) 43.4%
Return On Common Equity
Return on Common Equity (ROCE) measures the return a company generates on the common equity held by its shareholders, indicating how effectively equity is used to generate profits.
Net Income
A company's overall earnings minus all expenditures and tax obligations.
Preferred Stock
A class of ownership in a corporation with a fixed dividend that is paid before any dividends are paid to common stockholders. Preferred stock typically does not have voting rights.
- Evaluate the company's deployment of leverage and its profit-making capacity by scrutinizing financial records.
Verified Answer
NB
Learning Objectives
- Evaluate the company's deployment of leverage and its profit-making capacity by scrutinizing financial records.