A Company Already Has Calculated Its Basic Earnings Per Share

question 12

Multiple Choice

A company already has calculated its basic earnings per share (EPS) .In determining diluted earnings per share,the annual dividend on convertible cumulative preferred stock which is dilutive should be

• A) added back to the number of basic EPS whether declared or not.
• B) deducted from the numerator of basic EPS only if declared.
• 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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Definitions:

Interpersonal Reason

The capacity and process to think about and understand the reasons behind other people's behaviors and actions within social contexts.

Social Class

A categorization within society determined by social and economic levels.

FICA-OASDI

The Federal Insurance Contributions Act Old-Age, Survivors, and Disability Insurance program, which funds Social Security and is paid for by payroll taxes.

FUTA

An abbreviation for the Federal Unemployment Tax Act, which imposes a payroll tax on businesses to fund state workforce agencies.