Question: Return on equity is a ratiothat: A. cannot be calculated if the company has preferred shares in addition to common shares B. is calculated by

Return on equity is a ratiothat:

cannot be calculated if the company has preferred shares in addition to common shares

is calculated by dividing net income plus preferred dividends by average commonshareholders' equity

shows the relationship between net income available for common shareholders and average commonshareholders' equity

is calculated by dividing net income plus preferred dividends by average commonshareholders' equity and shows the relationship between net income available for common shareholders and average commonshareholders' equity

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