If a Company Has Preferred Stock, the Preferred Stock Dividend

question 83

True/False

If a company has preferred stock, the preferred stock dividend is added to net income when computing earnings per common share.

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Definitions:

MB = MC

A principle in economics indicating the optimal level of output or consumption, where the marginal benefit (MB) equals the marginal cost (MC).

Marginal Benefit

The added utility or pleasure that comes from the consumption of one more unit of a good or service.

Marginal Cost

The escalation in aggregate cost linked to the fabrication of an extra item of a good or service.

Free Products

Products that are provided to consumers without monetary charge, often used as a business strategy to attract users or customers.