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Explain How the Dividends on Cumulative Preferred Shares Are Adjusted

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Essay

Explain how the dividends on cumulative preferred shares are adjusted in the EPS calculation.What is the underlying logic for this adjustment?


Definitions:

Aqueous Solution

A solution where water is the solvent in which solutes are dissolved.

HCl

Hydrochloric acid, a strong and corrosive acid used in many industrial and laboratory processes.

Molecular Formula

A representation of the number and type of atoms in a molecule, without indicating how they are bonded together.

Molecule

The smallest unit of a chemical compound that can exist; composed of two or more atoms bonded together.

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