Question: Practice Question 4 In computing earnings per share for a simple capital structure, if the preferred shares are cumulative, the amount that should be deducted

Practice Question 4 In computing earnings per share for a simple capital structure, if the preferred shares are cumulative, the amount that should be deducted as an adjustment to the numerator (earnings) is the a.preferred dividends in arrears. b. preferred dividends in arrears times (one minus the income tax rate). c. annual preferred dividend times (one minus the income tax rate). d. none of these.

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