InvestorWords.com

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).


Related Videos




Search for another term


Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z