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:

Mutual Fund Shares

Units of ownership in a mutual fund, which pools money from many investors to purchase a diversified portfolio of securities.

Corporate Equity

The ownership interest represented by shares of a company's stock.

Net Worth

The total assets minus total liabilities of an individual or company, indicating financial health.

Liabilities

Financial obligations or debts owed by a company or individual.