Daily Corporation has outstanding 85,000 shares of $30 par-value preferred stock, issued at an average price of

Question:

Daily Corporation has outstanding 85,000 shares of $30 par-value preferred stock, issued at an average price of $37 a share. The preferred stock is convertible into common stock at the rate of three shares of common stock for each share of preferred stock. Neil Thomas owns 600 shares of the preferred stock. During the current year, he decides to convert 300 shares into common stock. How many shares of common stock will he receive?

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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...