Why are preferred dividends deducted from net income when calculating EPS? Are there circumstances when this deduction

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Why are preferred dividends deducted from net income when calculating EPS? Are there circumstances when this deduction is not made?

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Intermediate Accounting

ISBN: 9781259722660

9th Edition

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

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Question Posted: Jul 11, 2013 03:44 AM

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Why are preferred dividends deducted from net income when calculating EPS? Are there circumstances when this deduction

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Preferred dividends are deducted from the numerator in the EPS fraction so that earnings available ...View the full answer

Intermediate Accounting

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