Calculate the Incremental EPS for the Following Instrument A)$036
B)$0

question 90

Multiple Choice

Calculate the incremental EPS for the following instrument: $$\begin{array}{l}\begin{array} {| l | r |} \hline\text { Convertible bonds outstanding, yield of } 3 \% \text { and }\\ \text { coupon rate of } 3 \% & \$ 5,000,000 \\\hline \text { Issue date } & \text { January } 1,2015 \\\hline \text { Maturity date } & \text { December } 31,2022 \\\hline \text { Conversion rate for each } \$ 1,000 \text { bond } & 25 \text { ordinary shares } \\\hline \text { Income tax rate } & 30 \% \\\hline\end{array}\end{array}$$

• A)$0.36
• B)$0.84
• C)$40.00
• D)$105,000

---

Definitions:

Executive Summary

A concise summary of a business report or proposal, highlighting the key points and conclusions.

Graphics

Visual elements such as images, designs, or illustrations used to enhance or convey information in a visually engaging manner.

Memorandum Format

A commonly used structure for internal business communications, characterized by brevity, clarity, and a specific layout including to, from, date, and subject headings.

Letter Format

A structured way of organizing a written communication, typically including a date, salutation, body, closing, and signature.