Return on equity
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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.
