Which One of the Following Characteristics of Preferred Stock Would

question 86

Multiple Choice

Which one of the following characteristics of preferred stock would make the stock a dilutive security for purposes of calculating earnings per share?

• A) The preferred stock is callable.
• B) The preferred stock is convertible.
• C) The preferred stock is cumulative.
• D) The preferred stock is noncumulative.
• E) The preferred stock is participating.

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