In Calculating Basic Earnings Per Share, If the Preferred Shares

question 138

Multiple Choice

In calculating basic earnings per share, if the preferred shares are cumulative, the amount that should be deducted as an adjustment to the numerator is the

• A) annual preferred dividend.
• B) preferred dividends in arrears.
• C) annual preferred dividends net of income tax.
• D) preferred dividends in arrears net of income tax.

Understand how investments impact ROI and residual income.

Grasp the computation and significance of margin in ROI calculations.

Calculate and interpret the turnover ratio within the context of ROI.

Recognize the effects of new investments on a company's overall financial performance.

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