Why Are Preferred Dividends Deducted from Net Income When Calculating

question 72

Essay

Why are preferred dividends deducted from net income when calculating EPS?

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Definitions:

Conditional Operator

A ternary operator that provides a shorthand way to write if-else statements, evaluating a condition and returning one of two values.

Conditional Expression

A conditional expression, often using the ternary operator ?:, evaluates to one of two values depending on the truth value of a specified condition.

Ternary Operator

The ternary operator in programming is a conditional operator that simplifies the if-else statement into a single line of code, typically used in the format condition ? expression1 : expression2.

Unconditional Transfer

In computer science, refers to instructions or statements that cause the program to continue execution from a different address or line without any condition.