View source for Return on equity

[[Return on equity]] is net income minus preferred dividends, divided by average common stockholders' equity. It is a measure of profitability; also called rate of return on common stockholders' equity.

==Definitions==
According to [[Managerial Accounting by Braun, Tietz (5th edition)]],
:[[Return on equity]]. Net income minus preferred dividends, divided by average common stockholders' equity. It is a measure of profitability; also called rate of return on common stockholders' equity.

[[Category: Accounting]][[Category:Articles]]