Would you anticipate that a firm's Return on Common Equity would be smaller or larger than that same firm's Return on Total Assets?© BrainMass Inc. brainmass.com June 3, 2020, 8:32 pm ad1c9bdddf
Return on common stockholders' equity
= Net Income -Preference dividend / Average Equity
Return on Total ...
The solution compares return on common equity and total assets for small and large firms.