Return on Common Stockholders' Equity Is Calculated As

Multiple Choice

Return on common stockholders' equity is calculated as:

A) net income ÷ weighted average common shares outstanding.
B) (net income - preferred dividends) ÷ average common stockholders' equity.
C) weighted average common shares outstanding ÷ net income.
D) average common stockholders' equity ÷ (net income - preferred dividends) .
E) operating income ÷ average common stockholders' equity.