CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

In calculating diluted earnings per share, which of the following should not be considered?
A. The amount of cash dividends declared on common shares
B. The amount of cash dividends declared on cumulative preferred shares
C. The number of common shares resulting from the assumed conversion of outstanding debentures
Explanation: Dividends on common shares are never included in calculating EPS.

User Contributed Comments 2

User Comment
cong B should be disregarded (or called reversed) as well but A is obviously wrong.
ecapocas Both A & B would seem to be right technically.....I've completed several practice problems on here already where I had to calculate diluted EPS and if you didn't exclude preferred dividends you got them wrong.
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