Preference shares are excluded in the calculation of earnings per share

Question

Quizplus · Accepted Answer

Preference shares are a separate class of shares that have different rights and privileges compared to common shares. They are often entitled to a fixed dividend that must be paid before any dividends can be paid to common shareholders. As a result, preferred shares are excluded in the calculation of earnings per share, which only takes into account the earnings attributable to common shareholders.

Preference Shares Are Excluded in the Calculation of Earnings Per