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When considering the difference between return on assets (ROA) and return on common shareholders' equity (ROE), which of the following statements is incorrect? (Points : 3) |
Preferred dividends are deducted from the numerator when calculating ROE, but not when calculating ROA.
ROA is a pre-interest measure, but ROE is not.
ROA is a post-interest measure, but ROE is not.
ROA is independent of the form of financing, but ROE is not.
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