Question: When considering the difference between return on assets (ROA) and return on common shareholders' equity (ROE), which of the following statements is incorrect ? (Points

When considering the difference between return on assets (ROA) and return on common shareholders' equity (ROE), which of the following statements is incorrect? (Points : 3)

Preferred dividends are deducted from the numerator when calculating ROE, but not when calculating ROA. ROA is a pre-interest measure, but ROE is not. ROA is a post-interest measure, but ROE is not. ROA is independent of the form of financing, but ROE is not.

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