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:

Mark-up

The margin calculated by subtracting the cost of a product or service from its sale price, then dividing by the cost, expressed as a percentage.

Retail Price

The price at which goods are sold to the public, typically higher than the wholesale price.

Mark-up

Increment on the buying price of products targeted to offset operational costs and profits.

Selling Price

The price at which a product or service is sold to the consumer.