Sum of capital gains and dividend payments which are paid to stock holders on periodic basis is equal to

A. return to common stockholders

B. return on premium bonds

C. return to stock holder

D. return to preferred stock

Answer: Option C

Solution(By Examveda Team)

Sum of capital gains and dividend payments which are paid to stock holders on periodic basis is equal to return to stock holder. The return on shareholders’ equity ratio shows how much money is returned to the owners as a percentage of the money they have invested or retained in the company.