Assume Basic EPS Has Been Determined

question 47

Multiple Choice

Assume basic EPS has been determined.In determining the diluted earnings per share,the annual dividend on convertible noncumulative preferred shares,which are a dilutive convertible security,should be:

• A) Added back to the numerator of basic EPS whether declared or not.
• B) Disregarded.
• C) Added back to the numerator of basic EPS only if declared.
• D) Deducted from the numerator of basic EPS whether declared or not.

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