Which of the Following Is True for a Firm with Positive

question 108

Multiple Choice

Which of the following is true for a firm with positive earnings?

• A) When bonds are converted into shares of stock, earnings per share increases.
• B) When warrants are exercised, earnings per share increases.
• C) The number of shares of stock outstanding will decrease with either convertible bonds or warrants.
• D) Exercise of warrants and conversion of bonds will always result in a decrease in the price of the stock.
• E) Fully diluted earnings per share with either warrants or convertible bonds will be lower than earnings per share based only on shares presently outstanding.

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Definitions:

Effective Use

The capacity to utilize resources or strategies in a manner that achieves desired outcomes efficiently and optimally.

High Performance Companies

Organizations that consistently outperform their peers in key business outcomes, driven by superior leadership, culture, and operational effectiveness.

The Human Equation

Refers to incorporating human factors, such as emotions and personal relationships, into understanding and managing organizations.

Enriched Work Environment

A workplace design strategy aimed at improving employee satisfaction, motivation, and productivity by adding physical, psychological, or organizational enhancements.