Which of the return on equity ratios

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Problem 1: When a firm has noncontrolling interests, analysts may compute and review all except which of the following return on equity ratios?

Multiple Choice

Option 1: Return on total equity net of non-controlling interests where total equity includes common equity and preferred stock, less noncontrolling interests.

Option 2: Return on total equity where total equity includes common equity, preferred stock, and noncontrolling interests.

Option 3: Return on parent company equity where parent company equity includes both common equity and preferred stock.

Option 4: Return on common equity defined as net income attributable to the parent company minus pre­ferred dividends divided by average common equity.

Reference no: EM132971249

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