Earning per share is calculated with net income available to ordinary share holders only so as preferred dividend is not part of ordinary shareholders that's why it is deducted to find out the net income exclusively available for ordinary shareholders.
Depreciation expenses
dividend is a Comprehensive income includes net income, and other comprehensive income. Dividends received are included in net income and are included. However, dividends paid are not included in net income or other comprehensive income (and are therefore not in comprehensive income.
Long term liabilities do not get deducted from net income. Gross Income - Expenses = Net Income Net Income - Dividends = Retained Earnings. Paying a Long Term Liability has the following effects on the accounting equation. Decrease Assets (generally current as they are usually paid in cash) Decrease Liabilities (it's less you owe) Owners (stockholders) Equity is unchanged.
Dividends, cash or otherwise, are taxed as ordinary income.
Gross income is the money you earn before taxes and national insurance has been deducted. Once deducted, you are left with a net income.
net income/preferred dividends
Net income represents the amount of money remaining after all operating expenses, interest, taxes and preferred stock dividends have been deducted from a company's total revenue. The formula is Total Revenue - Total Expenses = Net Income.
Depreciation expenses
(Net Income - Preferred Stock Dividends) / Average common stockholders' equity
That's called a rebuttable presumption. see links
Robert Tannenwald has written: 'Tax reform, double taxation of dividends, and the integration of the corporation and individual income taxes' -- subject(s): Income tax, Law and legislation, Taxation 'Corporate deduction for dividends paid on preferred stock' -- subject(s): Corporations, Dividends, Finance, Stocks
100*Income from investment (over a period)/Average value of Investment The income may be in the form of interest, dividends or appreciation (increase in value of the asset).
Dividend declared and paid is shown under cash flows from financing activities in cash flow statment as it is not primary operating activity of business.
dividend is a Comprehensive income includes net income, and other comprehensive income. Dividends received are included in net income and are included. However, dividends paid are not included in net income or other comprehensive income (and are therefore not in comprehensive income.
Net income minus Preferred Dividends / Weighted-Average of Common Share Outstanding = Earning per share
Long term liabilities do not get deducted from net income. Gross Income - Expenses = Net Income Net Income - Dividends = Retained Earnings. Paying a Long Term Liability has the following effects on the accounting equation. Decrease Assets (generally current as they are usually paid in cash) Decrease Liabilities (it's less you owe) Owners (stockholders) Equity is unchanged.
Dividends are income from shares. It is not Interest