DE13-18 Answer these questions about two rates of return. 1. Give the formula for computing (a) rate

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DE13-18 Answer these questions about two rates of return. 1. Give the formula for computing

(a) rate of return on common stockholders' equity and

(b) rate of return on total assets. 2. Why are preferred dividends subtracted from net income to compute return on common stockholders' equity? 3. Why is interest expense added to net income to compute return on assets?

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Accounting

ISBN: 9780130906991

5th Edition

Authors: Charles T. Horngren, Walter T. Harrison, Linda S. Bamber, Betsy Willis, Becky Jones

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