Preferred Dividends Would Not Be Subtracted from Earnings When Computing

question 187

Multiple Choice

Preferred dividends would not be subtracted from earnings when computing basic earnings per share in a year when the dividends are not declared if the preferred stock is:

• A) Noncumulative.
• B) Convertible.
• C) Participating.
• D) Cumulative.

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Jumper Wire

A short electrical wire or conductor used to bridge or bypass part of an electronic circuit, allowing for testing or reconfiguration of the circuit.

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A calculation that measures the relative profitability of an investment, determined by dividing the present value of future cash flows by the initial investment cost.

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The concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity.