Ratios including Preferred Capital

[lola]

Preferred equity can be excluded or included in some ratios (i.e. equity turnover, debt to equity, etc) and my answers sometimes don't match Schweser's depending on whether I include it or not.

Is there any ambiguity related to this on the exam? How did you guys handle that?

thanks.

 

[fxl]

There should not be. Look for the word common equity in the aforementioned ratio, then you would exclude the preferred equity