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When Calculating Earnings Per Share, Preferred Dividends Are

Question 103

Multiple Choice

When calculating earnings per share, preferred dividends are:


A) added to net income in the numerator of the EPS calculation.
B) added to common shares in the denominator of the EPS calculation.
C) subtracted from common shares in the denominator of the EPS calculation.
D) subtracted from net income in the numerator of the EPS calculation.

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