When there has been a change in the number of preferred shares during the period,a weighted average number of shares must be determined for the EPS calculation.

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Quizplus · Accepted Answer

The weighted average number of shares for EPS calculation typically pertains to common shares, not preferred shares. Preferred shares usually have fixed dividends and do not affect EPS calculations in the same way common shares do.

When There Has Been a Change in the Number of Preferred