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A corporation has two classes of stock outstanding the

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A corporation has two classes of stock outstanding. The return on common stockholders" equity is computed by dividing net income:

  1. minus preferred dividends by the number of common stock shares outstanding at the balance sheet date.
  2. plus interest expense by the average amount of total assets.
  3. by the number of common stock shares outstanding at the balance sheet date.
  4. minus preferred dividends by the average amount of common stockholders" equity during the period.

Reference no: EM13567792

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