4. Weighted-Average Common Shares Outstanding Information Provided: Common Shares Balance at the beginning of the year On July 1, the company sold an additional 5,000,000 shares 8,000,000 shares Explain how weighted-average common shares outstanding is calculated. Explain why (walk through the calculation) the weighted average common shares outstanding based on the information above is 9 million shares. Explain why preferred shares are excluded when determining weighted-average common shares outstanding. Why are preferred dividends subtracted out of net income when determining EPS? Why are preferred dividends only subtracted from income from continuing operations and not also subtracted out of income from discontinued operations