To Calculate the Amount of Net Income Assignable to Common

question 101

Multiple Choice

To calculate the amount of net income assignable to common shareholders' equity, the analyst does not

• A)subtract all amounts required to compensate other providers of financing for the use of their funds.
• B)make any further adjustment for interest.
• C)subtract from net income any earnings allocable to preferred stock equity usually the dividends on preferred stock declared during the period.
• D)subtract dividends on common stock.
• E)none of the above

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