Which of the Following Is the Reason That Preferred Dividends

question 147

Multiple Choice

Which of the following is the reason that preferred dividends are deducted from net income in calculating earnings per share?

• A)They are not paid from net income.
• B)They are not a part of stockholders' equity.
• C)They are paid to preferred stockholders, not common stockholders.
• D)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.

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Definitions:

Narcolepsy

A chronic sleep disorder characterized by overwhelming daytime drowsiness and sudden attacks of sleep, often resulting in significant disruption to daily life.

Somniloquy

The act of talking during sleep, commonly referred to as sleep-talking.

Narcolepsy

A persistent condition marked by excessive sleepiness during the day and abrupt sleep episodes.

Daily Activities

Routine tasks or behaviors that individuals engage in on a regular basis, typically including work, leisure, and self-care practices.