Question: In computing earnings per share for a simple capital structure, if the preferred stock is cumulative, the amount that should be deducted as an adjustment

In computing earnings per share for a simple capital structure, if

In computing earnings per share for a simple capital structure, if the preferred stock is cumulative, the amount that should be deducted as an adjustment to the numerator (earnings) is the preferred dividends in arrears times (one minus the income tax rate). annual preferred dividend. preferred dividends in arrears. annual preferred dividend times (one minus the income tax rate)

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