Need an research paper on stock rate of return. Needs to be 4 pages. Please no plagiarism. In other words, SRR = Capital gain + Dividend yield. It is actually the benefits reaped by an investor relative to the cost of the initial investment. On the other hand, Return On Common Equity (ROCE) relates to the net income before dividend payments on preference shares etc. It is the rate of return on investment for the company’s common shareholders. A firm’s ROCE reveals the profit it generates with the invested money of shareholders. The ROCE is also useful for comparing the profitability of a company to that of other firms. The Stock Rate of Returns and the Return On Common Equity are related to each other in the following ways. (i) Can determine (ROCE) by subtracting preferred dividends from net income and subtracting preferred equity from shareholders’ equity, given: ROCE = Net Income – Preferred Dividends / Common Equity, where as the other (Capital gain + Dividend yield) gave the (SRR). (ii) Return on stocks may also be calculated by dividing net income by average shareholders’ equity. (iii) Investors may also calculate the change in ROE for a period, first by using shareholders’ equity at the start of the period as the denominator and then using shareholders’ equity at the end of the period as the denominator.
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