Exercise 20.4 Converting preferred stock. LO 20-4 nts Daily Corporation has outstanding 70,000 shares of $35 par-value preferred stock, issued at an average price of $42 a share. The preferred stock is convertible into common stock at the rate of two shares of common stock for each share of preferred stock. Neil Thomas owns 420 shares of the preferred stock. During the current year, he decides to convert 190 shares into common stock. How many shares of common stock will he receive? eBook Hint Common stock received shares erences