Which of the Following Is the Reason That Preferred Dividends

question 91

Multiple Choice

Which of the following is the reason that preferred dividends declared during the period are deducted from net income in calculating return on common stockholders' equity?

• A)Preferred dividends reduce the amount of income available for distribution to common stockholders.
• B)Preferred dividends are not paid from net income.
• C)Preferred dividends are not a part of stockholders' equity.
• D)Preferred dividends 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:

Universal Liberty

The concept that all human beings inherently possess rights and freedoms, regardless of nationality, race, or creed, emphasizing the universal aspect of human rights.

White Americans

Individuals living in the United States who identify as having European, Middle Eastern, or North African ancestry, often categorized based on racial classification.

Gabriel's Rebellion

An 1800 slave revolt in Richmond, Virginia, planned by a slave named Gabriel that was thwarted before it could begin.

Black Virginians

African American residents of Virginia, whose history and contributions are integral to the state's identity, including times of slavery and its aftermath.