For b$,$ the options for change are "increase, decrease, or no change". For C the first space options are "higher, or lower" and second space is "included, or excluded" Analyzing Convertible Preferred Stock

Xerox Corp. reports the following stockholders' equity information in its $\backslash (10-\backslash$mathrm$\{$K$\}\backslash )$ report. shares $($reflecting an initial conversion price of approximately $\backslash (\backslash$$ $26\mathrm{.}70\backslash )$ per share of common stock$),$ subject to customary anti$-$dilution adjustments.

Required

Current Year

Total dividend: $\backslash$$

b$.$ Determine whether the following accounts will increase, decrease, or have no change when the Convertible Preferred stock is converted. Required

Current Yeari

Tot$$l dividend: $\backslash$$

b$.$ Determine whether the following accounts will Increase, decrease, or have no change when the Convertible Preferred stock is converted.

c$.$ What is the benefit, if any, of issuing equity securitles with a conversion feature? How are the securities treated in the computation of earnings per share $($EPS$)?$

Companies typically issue debt and preferred stock with conversion features to get $\backslash (\backslash$bar$\{$z$\}\backslash )$ price for the securities$.$

These convertible securities are in the computation of diluted EPS.