Question $3$

$3$ pts

Starfish Co$.$ issued $420,000$ shares of common stock when it began operations in Year $1.$ In Year $2,$ Starfish issued an additional $110,000$ shares of common stock and $80,000$ shares of preferred stock $($each preferred share is convertible into one share of common stock$).$ In Year $3,60$ percent of the preferred shares were converted. At the end of Year $3,$ the firm had a $2$ for $1$ stock split. How many shares of common stock were outstanding at the end of Year $3?$

$1,156,000$

$578,000$

None of the other answers

$1,060,000$

$626,000$