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:

Epicenter

The point on the Earth's surface directly above the focus of an earthquake, where the seismic waves are felt most strongly.

Seismograms

The recorded output of a seismograph, which shows the motion of the ground during an earthquake or other seismic event.

Nomogram

A graphical calculating device, a two-dimensional diagram designed to allow the approximate graphical computation of a function.

Seismic Station

A facility equipped with instruments for detecting and recording earthquakes and other ground vibrations.