Return on Equity Is a Ratio That

Multiple Choice

Return on equity is a ratio that:

A) is calculated by dividing net income plus preferred dividends by average common shareholders' equity
B) shows the relationship between net income available for common shareholders and average common shareholders' equity
C) is calculated by dividing net income plus preferred dividends by average common shareholders' equity and shows the relationship between net income available for common shareholders and average common shareholders' equity
D) cannot be calculated if the company has preferred shares in addition to common shares