Multiple Choice
When considering the difference between return on net operating assets (RNOA) and return on common shareholders' equity (ROCE) , which of the following statements is incorrect?
A) Preferred dividends are deducted from the numerator when calculating ROCE but not when calculating RNOA.
B) RNOA is a pre-interest measure but ROCE is not.
C) RNOA is a post-interest measure but ROCE is not.
D) RNOA is independent of the form of financing but ROCE is not.
Correct Answer:
Verified
Correct Answer:
Verified
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