Which of the Following Is the Reason That Preferred Dividends

question 78

Multiple Choice

Which of the following is the reason that preferred dividends declared during the period are deducted from net income in calculating return on common stockholders' equity?

• A)Preferred dividends will reduce the amount of income available for distribution to common stockholders.
• B)Preferred dividends are not paid from net income.
• C)Preferred dividends are not a part of stockholders' equity.
• D)Preferred dividends are not paid until all common stockholders have received their dividends,so preferred dividends are not relevant in the formula and so must be taken out of the equation.

Evaluate the impact of external conditions (such as weather or defective components) on probability outcomes.

Understand how statistical evidence can indicate dependency between variables.

Assess the accuracy and implications of statistical tests and measurements.

Understand the factors that can hinder effective listening and the importance of avoiding these barriers.

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Definitions:

Consumer Law

A branch of law that deals with the rights of consumers and the regulation of trade practices to protect those rights.

Truth in Lending Act

A federal law designed to promote informed use of consumer credit by requiring disclosures about its terms and cost.

Credit Terms

Conditions under which credit is extended by a lender to a borrower, including interest rates, repayment schedule, and other critical terms of the credit agreement.

Identity Theft

Identity theft is the fraudulent acquisition and use of someone's private identifying information, typically for financial gain.