Net earnings available to common shareholders is calculated by deducting preferred dividends from net earnings.

Name: Net earnings available to common shareholders is calculated by deducting preferred dividends from net earnings.
Brand: Quizplus
Rating: 4.8 (36 reviews)

Question

Quizplus · Accepted Answer

Net earnings available to common shareholders is the amount of profit left after paying dividends to preferred shareholders. Therefore, preferred dividends are deducted from net earnings to arrive at the net earnings available to common shareholders.

Net Earnings Available to Common Shareholders Is Calculated by Deducting