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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