First Place Company has declared dividends of $2 per common share and $3 per preferred share. How will these dividends impact First Place’s earnings per share calculation? The common share dividend will be deducted from profit in the EPS calculation. The preferred share dividend will be deducted from profit in the EPS calculation. Both dividends will be deducted from profit in the EPS calculation. Neither dividend will impact the EPS calculation.

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The correct answer is The preferred share dividend will be deducted from profit in EPS calculat... View the full answer