Why are preferred dividends deducted from net income


Discussion Post

• Let's start by defining the following terms.

o Basic earnings per share.
o Potentially dilutive security.
o Diluted earnings per share.
o Complex capital structure.
o Potential common stock.

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

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Other Subject: Why are preferred dividends deducted from net income
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