The Calculation of Rate of Return on Common Shareholders' Equity $\frac{\text {Net Income - Dividends on Preferred Stock }}{\text {Ending Common Shareholders' Equity }}$

Multiple Choice

The calculation of Rate of Return on Common Shareholders' Equity (ROCE) is as follows: Rate of Return on Common = Shareholders' Equity

A) $\frac{\text {Net Income - Dividends on Preferred Stock }}{\text {Ending Common Shareholders' Equity }}$
B) $\frac{\text { Net Income}}{\text { Average Common Shareholders' Equity}}$
C) $\frac{\text { Net Income + Dividends on Preferred Stock}}{\text {Average Common Shareholders' Equity }}$
D) $\frac{\text {Net Income - Dividends on Preferred Stock }}{\text {Average Common Shareholders' Equity }}$
E) $\frac{\text {Net Income + Dividends on Preferred Stock }}{\text { Ending Common Shareholders' Equity}}$