Calculate the Share Effect on the Incremental EPS for the Following

question 93

Multiple Choice

Calculate the share effect on the incremental EPS for the following instrument: $$\begin{array}{l}\begin{array} {| l | r |} \hline \text { Convertible bonds outstanding, yield of } 5 \% \text { and }\\\text { coupon rate of } 5 \% & \$ 2,000,000 \\\hline \text { Issue date } & \text { January } 1,2013 \\\hline \text { Maturity date } & \text { December } 31,2020 \\\hline \text { Conversion rate for each } \$ 1,000 \text { bond } & 40 \text { ordinary shares } \\\hline \text { Income tax rate } & 25 \% \\\hline\end{array}\end{array}$$

• A)0.63
• B)1.88
• C)75,000
• D)80,000

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Definitions:

Disorganized Schizophrenic

A subtype of schizophrenia characterized by disorganized speech, behavior, and flat or inappropriate affect.

Undifferentiated Schizophrenic

A category of schizophrenia where symptoms do not clearly fit the criteria for other subtypes, showcasing a mix of features.

Paranoid Schizophrenic

A subtype of schizophrenia where the individual experiences delusions of persecution or grandeur, often accompanied by auditory hallucinations.

Psychotic Disorder

A mental disorder characterized by a disconnection from reality, often manifesting through delusions, hallucinations, and severely disordered thinking and behavior.