According to a question in book 7, non-cumulative dividends if no dividends are declared that year should not be included in calculating prf div’s in EPS calculation? Could anyone confirm this? Thanks
that sounds about right, because a non-cumulative dividend is never on the hook for having to make up those missed dividend payments. because cumulative divs need to be paid before common, you could argue that you should take out the cumulative pfd from the income statement even though it wasn’t declared.
mib20 Wrote: ------------------------------------------------------- > that sounds about right, because a non-cumulative > dividend is never on the hook for having to make > up those missed dividend payments. because > cumulative divs need to be paid before common, you > could argue that you should take out the > cumulative pfd from the income statement even > though it wasn’t declared. Thx. Typical book 7 question shattering my confidence.