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Which of the following is the reason that preferred dividends are deducted from net income in ...

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Which of the following is the reason that preferred dividends are deducted from net income in ...

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

Edition: 4^th

Author: Davis

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kickykhalil Author

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Thanks

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I appreciate what you did here, answered it right Smiling Face with Open Mouth

sweetalia

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Smart ... Thanks!

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