Wildhorse Inc. has 0.90 million common shares outstanding as at January 1, 2020. On June 30, 2020,4% convertible bonds were converted into 95,000 additional shares. Up to that point, the bonds had paid interest of $606,000 after tax. Net income for the year was $1,299,578. During the year, the company issued the following: 1. June 30: 12,400 call options giving holders the right to purchase shares of the company for $26 2. Sept. 30: 17,400 put options allowing holders to sell shares of the company for $21 On February 1, Wildhorse also purchased in the open market 12,400 call options on its own shares, allowing it to purchase its own shares for $23. Assume the average market price for the shares during the year was $31. Assume further the following: 1. On September 30, 190,000 convertible preferred shares were redeemed. If they had been converted, these shares would have resulted in an additional 95,000 common shares being issued. The shares carried a dividend rate of $3 per share to be paid on September 30. No conversions have ever occurred. 2. There are 10,100 of $1,000, 6% convertible bonds outstanding with a conversion rate of three common shares for each bond starting January 1, 2021. Beginning January 1, 2024, the conversion rate is six common shares for each bond; and beginning January 1, 2028, it is nine common shares for each bond. The tax rate is 30%. Calculate weighted common shares outstanding. Weighted common shares outstanding Wildhorse Inc. has 0.90 million common shares outstanding as at January 1, 2020. On June 30, 2020,4% convertible bonds were converted into 95,000 additional shares. Up to that point, the bonds had paid interest of $606,000 after tax. Net income for the year was $1,299,578. During the year, the company issued the following: 1. June 30: 12,400 call options giving holders the right to purchase shares of the company for $26 2. Sept. 30: 17,400 put options allowing holders to sell shares of the company for $21 On February 1, Wildhorse also purchased in the open market 12,400 call options on its own shares, allowing it to purchase its own shares for $23. Assume the average market price for the shares during the year was $31. Assume further the following: 1. On September 30, 190,000 convertible preferred shares were redeemed. If they had been converted, these shares would have resulted in an additional 95,000 common shares being issued. The shares carried a dividend rate of $3 per share to be paid on September 30. No conversions have ever occurred. 2. There are 10,100 of $1,000, 6% convertible bonds outstanding with a conversion rate of three common shares for each bond starting January 1, 2021. Beginning January 1, 2024, the conversion rate is six common shares for each bond; and beginning January 1, 2028, it is nine common shares for each bond. The tax rate is 30%. Calculate weighted common shares outstanding. Weighted common shares outstanding