Throughout the year, Baker Construction Company had 3 million shares of common stock and 150,000 shares of

Question:

Throughout the year, Baker Construction Company had 3 million shares of and 150,000 shares of convertible preferred stock outstanding. Each share of preferred is convertible into two shares of common. What number of shares should be used in the computation of
(a) Basic earnings per share and
(b) diluted earnings per share?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...