Calculate the Incremental EPS for the Following Instrument A)063
B)1

question 67

Multiple Choice

Calculate the incremental EPS for the following instrument: $$\begin{array}{l}\begin{array} { | l | r| } \hline\text { Convertible bonds outstanding, yield of } 5 \% \text { and }\\ \text { coupon rate of } 5 \% & \$ 2,000,000 \\\hline \text { Issue date } & \text { January } 1,2013 \\\hline \text { Maturity date } & \text { December } 31,2018 \\\hline \text { Conversion rate for each } \$ 1,000 \text { bond } & 20 \text { ordinary shares } \\\hline\end{array}\end{array}$$

• A)0.63
• B)1.88
• C)40,000
• D)75,000

---

Definitions:

Rental Cost

The price paid for the temporary use of a good, service, or property owned by another.

Private Investment

Financial resources allocated by individuals or entities into private sector projects or companies aiming to earn returns.

Uncertainty

A situation where the outcomes or variables of a situation are unpredictable, often leading to risk in economic and financial decisions.

International Incident

An event that might cause tension or conflict between nations, often involving diplomatic, military, or political issues.