Technical Question with Preferred Equity
I have two questions. I’m trying to calculate EPS, but have a preferred equity investment: (1) The only place the interest (dividends) on preferred equity would appear on the income statement is as an adjustment below net income to get net income distributable to common, is that correct? (2) Would you still make the adjustment in #1 to net income if the preferred dividend was a PIK (to calculate EPS)?
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