A company starts on January 1, 2020 with 50,000 common shares outstanding. The only common stock transaction during 2020 was a 3: 1 share split. This partition occurred on October 1, 2020. For the purpose of calculating earnings per share for 2020, the number of common shares outstanding was:

to. 50,000 c. 75,000 b. 150,000 d. 100,000

A company has cumulative and convertible preferred shares outstanding. Comparing the computation of diluted earnings per share with basic earnings:

to. The numerator of the diluted profit will be higher than that of the basic one. b. The denominator of the diluted profit will be greater than that of the basic one. c. Both a and b are true. d. Both a and b are wrong.