While calculating dividend cover for preference shares the numerator should be taken as:

CS Executive · Cost and Management Accounting · PYQS · December 2019
While calculating dividend cover for preference shares the numerator should be taken as:
(A) Earnings Before Interest and Tax
(B) Profit available for equity shareholders
(C) Profit After Tax
(D) Profit After Tax + Depreciation

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Financial Statement Analysis

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