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Other Fields Homework Help Accounting Topic started by: kickykhalil on Feb 5, 2023



Title: Which of the following is the reason that preferred dividends are deducted from net income in ...
Post by: kickykhalil on Feb 5, 2023
Which of the following is the reason that preferred dividends are deducted from net income in calculating earnings per share?

▸ They are paid to preferred stockholders, not common stockholders.

▸ They are not paid until all common stockholders have received their dividends, so preferred dividends are not relevant in the formula and so must be taken out of the equation.

▸ They are not a part of stockholders' equity.

▸ They are not paid from net income.


Title: Which of the following is the reason that preferred dividends are deducted from net income in ...
Post by: egidrarc on Feb 5, 2023
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