The rate of return on common stockholders' equity is a commonly used way to compare the profitability of one company to another.

Question

Quizplus · Accepted Answer

The rate of return on common stockholders' equity, also known as return on equity (ROE), is a widely used financial ratio to assess a company's profitability and efficiency. ROE measures how much profit a company generates from each dollar of equity it has, making it a useful metric for comparing the relative performance of different companies. Therefore, option A is correct.

The Rate of Return on Common Stockholders' Equity Is a Commonly