The correct answer is D. common equity.
Common equity is the equity that is held by the common shareholders of a company. It is the residual interest in the assets of a company after all liabilities have been paid. Common equity is typically represented by common stock, which is a type of security that gives the holder the right to vote on company matters and to receive a share of the company’s profits.
Retained earnings is the portion of a company’s net income that is not paid out as dividends to shareholders. It is a component of common equity, as it represents the accumulated earnings of the company that have been reinvested in the business.
Preferred equity is a type of equity that has a higher claim on the assets of a company than common equity. Preferred shareholders have a right to receive dividends before common shareholders, and their shares are typically not as volatile as common shares.
Due equity is not a term that is commonly used in financial accounting. It is possible that it is being used to refer to debt, which is a liability that a company owes to its creditors. Debt is not a component of equity, as it represents a claim on the assets of a company that is subordinate to the claims of equity holders.
In conclusion, the sum of retained earnings and common stock is considered as common equity.