Rate of return on common stockholders’ equity ratio: It is a profitability ratio that measures the profit generating ability of the company from the invested money of the shareholders. The formula to calculate the return on common stockholders’ equity is as follows: Rate of return on common stockholders' equity } = Net income–Preferred dividends Average common stockholders' equity × 100 To Compute: the rate of return on common stockholders’ equity for 2018 for Incorporation W.

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Chapter 13, Problem 13.18SE

To determine

Rate of return on common stockholders’ equity ratio: It is a profitability ratio that measures the profit generating ability of the company from the invested money of the shareholders. The formula to calculate the return on common stockholders’ equity is as follows:

Rate of return on commonstockholders' equity}= Net income–Preferred dividendsAverage common stockholders' equity×100

To Compute: the rate of return on common stockholders’ equity for 2018 for Incorporation W.

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