2875. A formula such as net income available to common stockholders divided by common equity is used to calculate

return on earning power
return on investment
return on common equity
return on interest
✅ The correct answer is C.
A formula such as net income available to common stockholders divided by common equity is used to calculate return on common equity. The Return on Common Equity (ROCE) ratio refers to the return that common equity investors receive on their investment.

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