Question

Return on common equity measures profitability per dollar of investment for: a. short-term suppliers of funds...

Return on common equity measures profitability per dollar of investment for:

a.

short-term suppliers of funds

b.

all suppliers of funds

c.

common stockholders

d.

all stockholders

e.

long-term suppliers of funds

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Answer #1

Solution:

Return on common equity measures profitability per dollar of investment for "common stockholders".

Hence, option "c" is correct.

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