Return on assets and return on common shareholders equity

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Reference no: EM13877967

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

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.

Reference no: EM13877967

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