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

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Definitions:

Anti-inflammatory

Referring to substances or treatments that reduce inflammation or swelling in the body.

Cortisol

A steroid hormone produced by the adrenal glands, involved in the body's stress response as well as metabolism and immune function.

Gastrin

A hormone that stimulates the secretion of gastric acid by the stomach's parietal cells.

Somatotropin

Also known as growth hormone (GH), it is a peptide hormone that stimulates growth, cell reproduction, and cell regeneration in humans and other animals.