When Calculating Diluted Earnings Per Share, Convertible Bonds Are

question 66

Multiple Choice

When calculating diluted earnings per share, convertible bonds are

• A) ignored.
• B) assumed converted whether they are dilutive or antidilutive.
• C) assumed converted only if they are antidilutive.
• D) assumed converted only if they are dilutive.

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Definitions:

Unsecured Bonds

Debentures or bonds that are not backed by specific collateral.

Debentures

A type of long-term debt instrument that is not secured by physical assets or collateral but based on the issuer's creditworthiness and reputation.