Rate of Return on Common Shareholders' Equity (ROCE)

Multiple Choice

Rate of return on common shareholders' equity (ROCE)

A) measures a firm's performance in using and financing assets to generate earnings and explicitly considers financing costs.
B) a measure of profitability that incorporates the results of operating, investing, and financing activities.
C) equals net income (less dividends on preferred stock, if any) divided by average common shareholders' equity.
D) all of the above
E) none of the above