The Numerator of the Rate of Return on Common Shareholders

Multiple Choice

The numerator of the rate of return on common shareholders' equity

A) is the amount of earnings assignable to common shareholders' equity after subtracting all amounts required to compensate other providers of financing for the use of their funds.
B) subtracts from net income any earnings allocable to preferred stock equity, usually the dividends on preferred stock declared during the period.
C) does not subtract the dividends on common stock because such dividends represent distributions to common shareholders of a portion of the returns generated for them during the period.
D) all of the above
E) none of the above