Return on equity is a ratiothat:

A.

cannot be calculated if the company has preferred shares in addition to common shares

B.

is calculated by dividing net income plus preferred dividends by average commonshareholders' equity

C.

shows the relationship between net income available for common shareholders and average commonshareholders' equity

D.

is calculated by dividing net income plus preferred dividends by average commonshareholders' equity and shows the relationship between net income available for common shareholders and average commonshareholders' equity