A Company with Convertible Bonds Outstanding Will Need to Adjust

question 77

Multiple Choice

A company with convertible bonds outstanding will need to adjust the denominator of the diluted EPS equation. If the bonds are outstanding all year, the adjustment will consist of the ________.

• A) number of bonds in the debt issue
• B) conversion ratio times the number of bonds outstanding net of taxes
• C) conversion ratio times the number of bonds outstanding
• D) number of bonds issued during the current year

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Definitions:

Spontaneity

The quality of being impulsive or acting without premeditation.

Everyday Organizations

Pertains to the common, routine structures and institutions that govern daily life and interactions, typically unnoticed but foundational to societal functioning.

Environmental Pollution

The contamination of the natural environment, which causes adverse changes and harm to ecosystems and human health.

Environmental Racism

The dumping of toxic wastes with disproportionate frequency at or very near areas with high concentrations of minorities.