When calculating earnings per share,only cumulative preferred dividends need to be taken into consideration.

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Both cumulative and non-cumulative preferred dividends need to be taken into consideration when calculating earnings per share. Non-cumulative preferred dividends are only paid if the company has sufficient profits in that particular year, while cumulative preferred dividends accumulate if they are not paid in a given year and must be paid before any dividends are paid to common shareholders in subsequent years.

When Calculating Earnings Per Share,only Cumulative Preferred Dividends Need to Be