INFORMATION RELATING TO COMMON STock BALANCES AND TRANSACTIONS DURING YEAR Date Description 1/1 Common shares outstanding Shares 2/1 Issued common shares for cash 7/1 Repurchased common shares for cash 12/1 Issued common shares for cash 100,000 10,000 5,000 25,000 What was the company's weighted average common shares outstanding for the year? (a) 108,750. (b) 126,667. (c) 130,000. (d) 115,000. When computing diluted earnings per share, convertible securities that are not considered common stock equivalents are (a) Ignored. (b) Recognized only if they are antidilutive. (c) Recognized only if they are dilutive. (d) Recognized if they are dilutive or antidilutive. A company's convertible preferred stock is considered both a common stock equivalent and dilutive in calculating earnings per share. What effect will the convertible preferred stock have on each of the following calculations? Basic EPSDiluted EPS (a) Decrease Decrease (b) No effect Decrease (c) DecreaseNo effect (d) Increase Increase 5. A company had the following capital structure