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View Full Version : Return on common stockholders' equity is computed by dividing net income by ending st


sulu
Jul 18, 2011, 04:40 PM
Is it true of false that Return on common stockholders' equity is computed by dividing net income by ending stockholders' equity?

Just Looking
Jul 19, 2011, 07:14 AM
It is computed using average stockholders' equity, and since it is asking for common stockholders' equity you deduct preferred stock if there is any.