In computing earnings per share

10) In computing earnings per share, the equivalent number of shares of are added as an adjustment to the denominator (number of shares outstanding). If the preferred stock is cumulative, which amount should then be added as an adjustment to the numerator (net earnings)?

A. Annual preferred dividend
B. Annual preferred dividend divided by the
C. Annual preferred dividend times (one minus the income tax rate)
D. Annual preferred dividend times the income tax rate

11) When per share, convertible bonds are

A. ignored
B. assumed converted only if they are dilutive
C. assumed converted whether they are dilutive or antidilutive
D. assumed converted only if they are antidilutive