Calculate the Incremental EPS for the Following Instrument A)075
B)0

question 86

Multiple Choice

Calculate the incremental EPS for the following instrument: $\begin{array}{|l|r|}\hline\begin{array}{l}\text { Convertible bonds outstanding, effective yield } \\\text { of } 7 \% \text { and coupon rate of } 6 \%\end{array} & \$ 2,000,000 \\\hline \text { Issue date } & \text { January 1, 2019 } \\\hline \text { Maturity date } & \text { December 31, 2018 } \\\hline \text { Conversion rate for each } \$ 1,000 \text { bond } & \text { 20 ordinary share } \\\hline \text { Income tax rate } & 25 \%\\\hline\end{array}$

• A)0.75
• B)0.88
• C)2.25
• D)2.63

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Definitions:

Inconsistent

Behavior or responses that show a lack of steadiness or uniformity, often leading to unpredictability.

Self-Promotion

The action of promoting oneself, one's abilities, or achievements, often to advance one's career or reputation.

Stereotyping

The act of ascribing generalized and oversimplified characteristics to all members of a group, often leading to biased perceptions.

Projection

A defense mechanism where individuals attribute their own unacceptable thoughts, feelings, and motives to another person.