Strait Inc. has 300,000 common shares outstanding throughout the year. On June 30, Strait issued 10,000 convertible

Question:

Strait Inc. has 300,000 common shares outstanding throughout the year. On June 30, Strait issued 10,000 convertible preferred shares that are convertible into two common shares each. Calculate the weighted average number of common shares to use in calculating the diluted EPS. Assume that the preferred shares are dilutive.