Day: May 6, 2022

The following tables reveal general features that can be modified on a company by company basis. Some preferred stock issues may carry a provision entitling the shares for conversion to common stock. Suppose a business is liquidated, if the preferred shares are non-participating, then they simply receive their original investment (in this case 105,000) and […]

The potential for conversion must be factored into the calculation of diluted EPS, a metric that provides a more comprehensive view of a company’s earnings by considering all potential sources of dilution. This requires careful attention to the terms of conversion and the timing of potential conversions, as these factors can significantly impact the diluted […]