CMA Study Group

Cumulative Preferred Dividends

  • 1.  Cumulative Preferred Dividends

    Posted 23 days ago
    While calculating the Basic EPS, if the question states that last year the cumulative dividends were earned and not paid, but this year the company is paying the cumulative dividends for both years. So while calculating the income available to shareholders for the current year, will i deduct the cumulative dividends for current year and previous year or just for the current year?

    Nupur Mahajan
    Hartford CT United States