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TeachMeFinance.com - explain Return on common equity Return on common equity The term 'Return on common equity' as it applies to the area of energy can be defined as ' The net income less preferred stock dividends, divided by the average common stock equity'. Previous 5 Terms: Retrogression Retroviral infection Return Flow Return flow return flow (irrigation) Next 5 Terms: Return on common stock equity return period Return Stroke Return-flow system (reuse system) Reuse About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005-2011 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional medical, legal or financial advice. Information presented at TeachMeFinance.com is provided on an "AS-IS" basis. Please read the disclaimer for details.