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When Computing Earnings Per Share, Preferred Dividends Are

Question 77

Multiple Choice

When computing earnings per share, preferred dividends are:


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

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