Which Statement Is Correct About the "Share Effect" on EPS

question 6

Multiple Choice

Which statement is correct about the "share effect" on EPS?

• A)This is the incremental before-tax income available to ordinary shareholders.
• B)This is the incremental after-tax income available to ordinary shareholders.
• C)This is the incremental number of ordinary shares outstanding before conversion.
• D)This is the incremental number of ordinary shares outstanding after conversion.

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Definitions:

Maltase

An enzyme that breaks down maltose into glucose during digestion.

Lactase

Lactase is an enzyme found in the small intestine that is responsible for the digestion of lactose, the sugar found in milk.

Carbohydrates

A macronutrient group consisting of sugars, starches, and fibers found in fruits, grains, vegetables, and milk products, essential for providing energy to the body.

Pancreatic Amylase

An enzyme that digests carbohydrates.