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A formula such as net income available to common stockholders divided by common equity is used to calculate

A. return on earning power

B. return on investment

C. return on common equity

D. return on interest

Answer: Option C

Solution(By Examveda Team)

A formula such as net income available to common stockholders divided by common equity is used to calculate return on common equity. The Return on Common Equity (ROCE) ratio refers to the return that common equity investors receive on their investment.

This Question Belongs to Commerce >> Financial Management

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