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kickykhalil kickykhalil
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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.
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Managerial Accounting

Managerial Accounting


Edition: 4th
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egidrarcegidrarc
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They are paid to preferred stockholders, not common stockholders.
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kickykhalil Author
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A month ago
Brilliant ツ
husne
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Helped a lot
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This site is awesome
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