Question 5 (5 points) 5. Your company also has 40,000 shares of 6% convertible, cumulative preferred stock ($100 par value per share) which was outstanding for the full year. Each preferred share can be converted into 3 shares of common stock. No preferred dividend has been declared for the current and preceding 2 years. The tax rate is 40%. Using the "if converted" method, calculate the impact on the numerator and denominator in your December 31, 2019 diluted earnings per share calculation. A. $720,000 numerator and 360,000 denominator B. $480,000 numerator 240,000 denominator C. $240,000 numerator 120,000 D. There is no impact since this convertible preferred stock is anti dilutive