Earnings available to common shareholders are defined as net profits
A) after taxes.
B) after taxes minus preferred dividends.
C) after taxes minus common dividends.
D) before taxes.

Question

Quizplus · Accepted Answer

Earnings available to common shareholders are the profits that are available to be distributed among the common shareholders after all expenses and obligations, including both taxes and dividends to preferred shareholders, have been paid.

Earnings Available to Common Shareholders Are Defined as Net Profits