Dividends in arrears on preferred shares is included in the calculation of the book value per preferred share.

Name: Dividends in arrears on preferred shares is included in the calculation of the book value per preferred share.
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Dividends in arrears on preferred shares represent an obligation of the company to pay a specified amount of dividend to the preferred shareholders in the future. Therefore, it is considered a liability and is included in the calculation of the book value per preferred share.

Dividends in Arrears on Preferred Shares Is Included in the Calculation