Explanation:
Explanation:
Option A (Incorrect): Intrinsic value refers to the true value of an asset, typically estimated using the present value of future projected cash flows. This does not align with the given calculation.
Option B (Correct): Return on equity (ROE) is calculated as net income available to ordinary shareholders (after preferred dividends) divided by the average total book value of equity (BVE). This matches the description in the question.
Option C (Incorrect): The minimum required rate of return for investors is often proxied by the company's cost of equity, which is not the same as the described calculation. Companies aim to raise capital at the lowest possible cost, and this metric is distinct from ROE.
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A company's net income available to ordinary shareholders divided by the average total book value of equity is best described as the:
A
Company's intrinsic value.
B
Company's return on equity.
C
Minimum required rate of return for investors in the company's equity.