Preferred Stock 2. Shady Holdings Inc. is authorized to issue 20 000 Convertible Preferred Shares with a value of $10. The preferred shares can be converted into common shares at a ratio of 1:3. a. Issued 4 000 Preferred Shares at a value of $25 per share on March 15. b. One of the shareholders exercises their option and converts 500 of these preferred shares for common stock on April 2