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What is the formula for determining Return on Common Equity? Net income preferred stock dividends/average common shareholders equity. Net income tax/average price per share. Net

  1. What is the formula for determining Return on Common Equity?

  1. Net income preferred stock dividends/average common shareholders equity.
  2. Net income tax/average price per share.
  3. Net income before tax minus basis.
  4. None of these options.

  1. True or False. A disregarded entity exists for tax purposes to benefit a shareholder.

  1. True.
  2. False.

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