return on common equity

Definition
ROCE. A variation of the Return on Equity formula which subtracts preferred dividends from net income and preferred equity from shareholders' equity. This variation shows the effect of common shares on profitability. Its formula is (Net income - preferred dividends)/(shareholders' equity - preferred equity).




return on common equity is ...
... part of the
Earnings subject.


Related Terms

capital turnover -  More
equity turnover -  More


return on common equity appears in the definitions of these other terms on BusinessDictionary.com

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