Preferred dividends paid are added back to net income in calculating earnings per share for common stockholders.

Name: Preferred dividends paid are added back to net income in calculating earnings per share for common stockholders.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Preferred dividends are subtracted from net income in calculating earnings available for common stockholders. Therefore, they are not added back to calculate earnings per share for common stockholders.

Preferred Dividends Paid Are Added Back to Net Income in Calculating