alleryStart learning →To reach that figure, preferred dividends are first removed from:
ATotal equity
BNet income
CTotal assets
DTotal sales
Answer & Solution
Correct answer: B. Net income
1. Common shareholders come after preferred.
2. What remains is available to them.
3. They are removed from net income.
_Source: OpenStax Principles of Finance 2e, Chapter 6, Measures of Financial Health._
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