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:

Lenz's Law

A principle in electromagnetism stating that induced currents will flow in a direction that opposes the change causing them.

Polarity

The characteristic of having two opposed attributes or poles, commonly used in reference to the direction of electrical current or magnetism.

Ohm's Law

A fundamental principle in electrical engineering that states the current through a conductor between two points is directly proportional to the voltage across the two points and inversely proportional to the resistance.

Resistive Circuit

A type of electrical circuit that consists solely of resistors and obeys Ohm's Law, designed for applications where resistance is the primary concern.