. 1. B&B Company calculated its net income to be $267,000 for Year 3. At the end of Year 3, the company had the following securities outstanding: 50,000 shares of common stock selling at $7.50 per share. 6% convertible preferred stock, which had been sold at its par value of $50. The stock is convertible into two shares of common stock 5,500 preferred shares are currently outstanding. What is the basic earnings per share for B&B Company? a. $3.54 b. $4.12 c. $6.00 d. $5.01