Calculate the Incremental EPS for the Following Instrument A)188
B)0

question 22

Multiple Choice

Calculate the incremental EPS for the following instrument: $$\begin{array}{l}\begin{array} {| l | r |} \hline\text { Convertible bonds outstanding, yield of } 5 \% \text { and }\\ \text { coupon rate of } 4 \% & \$ 2,000,000 \\\hline \text { Issue date } & \text { January } 1,2013 \\\hline \text { Maturity date } & \text { December } 31,2020 \\\hline \text { Conversion rate for each } \$ 1,000 \text { bond } & 40 \text { ordinary shares } \\\hline \text { Income tax rate } & 25 \% \\\hline\end{array}\end{array}$$

• A)1.88
• B)0.75
• C)0.31
• D)0.25

---

Definitions:

Bases

Substances that can accept hydrogen ions (protons) or more generally, donate electron pairs, in chemical reactions.

Complementary Strand

A nucleic acid strand that forms a sequence match according to the base pairing rules with another strand.

Base Sequence

The order of nucleotide bases in a DNA or RNA molecule that encodes genetic information.

Uracil

A nitrogenous base found in RNA that pairs with adenine during RNA synthesis.