A company is calculating its diluted earnings per share for the year 2021. The only potentially diluting instrument the company has is convertible preferred stock. These shares were issued on May 1, 2021. When calculating the denominator of the diluted profit, the company: a. It will presume that the preferred shares were converted to common shares on January 1, 2021. b. It will presume that the preferred shares were converted to common shares on May 1, 2021. c. You cannot presume that they were converted to common shares, because the shares did not exist on January 1, 2021. Therefore, you will not present diluted profit. d. When potentially diluting instruments are issued after the beginning of the year it is always presumed that they will be antidiluting.