When considering the difference between the 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.
Answer: C
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