The return on common stockholder's equity measures a company's success in earning net income for its owners.

Name: The return on common stockholder's equity measures a company's success in earning net income for its owners.
Brand: Quizplus
Rating: 4.8 (35 reviews)

Question

Quizplus · Accepted Answer

The return on common stockholder's equity is a ratio that shows how much net income a company has generated in relation to the amount of common stockholder's equity invested in the company. Therefore, it is a measure of a company's success in earning net income for its owners.

The Return on Common Stockholder's Equity Measures a Company's Success