A convertible preferred stock will be included in the denominator of diluted earnings per common share.

Name: A convertible preferred stock will be included in the denominator of diluted earnings per common share.
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Question

Quizplus · Accepted Answer

Convertible preferred stock can be converted into common stock and hence, it has the potential to dilute the earnings per common share. Therefore, it is included in the denominator of diluted earnings per common share.

A Convertible Preferred Stock Will Be Included in the Denominator