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

question 98

Multiple Choice

Which statement is correct about the "income 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:

Measurable Performance Standards

Specific criteria used to assess the effectiveness or efficiency of an employee's work performance, usually quantifiable.

Performance Evaluation

A systematic process for assessing the performance of employees and providing them with feedback to improve their job effectiveness.

Frequency Distribution

A summary of how often different values or ranges of values occur in a dataset.

Cumulative Percent

The percentage that represents the sum of its own and all previous categories in a frequency distribution.