When Computing Earnings Per Share, Preferred Dividends Are

question 77

Multiple Choice

When computing earnings per share, preferred dividends are:

• A)subtracted from common shares in the denominator of the EPS calculation.
• B)subtracted from net income in the numerator of the EPS calculation.
• C)added to net income in the numerator of the EPS calculation.
• D)added to common shares in the denominator of the EPS calculation.

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Definitions:

Stereocilia

Hairlike projections of hair cells; microvilli that contain actin filaments.

Lateral Line Organs

Specialized sense organs in aquatic vertebrates that detect movement and vibration in the surrounding water.

Hair Cells

Sensory cells located in the inner ear that are responsible for converting sound and motion into electrical signals.

Stereocilia

Hairlike projections on the surface of certain cells, such as those in the inner ear, aiding in the detection of vibration and sound.