Calculating Earnings per share - Treatment to equity & preference share capital

Q.  While calculating Earnings per share, if both equity and preference share capitals are there, then
- Published on 14 Sep 15

a. Preference share is deducted from the net profit
b. Equity share capital is deducted from the net profit
c. Both a and b
d. None of the above

ANSWER: Preference share is deducted from the net profit

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