During 2016, Oddie Corp

question 23

Multiple Choice

During 2016, Oddie Corp. had net income of $300,000. Included in net income was after-tax interest expense of $20,000 on convertible bonds. The $200,000 face value of convertible bonds can be converted into common stock at the rate of 200 shares per $1,000 bond. Prior to the conversion, there were 400,000 shares of common stock outstanding. What is the amount of fully diluted earnings per share?

• A) $0.636
• B) $0.727
• C) $0.750
• D) not determinable because the bonds are not dilutive

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Definitions:

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Events in which a vehicle collides with another vehicle, pedestrian, animal, road debris, or other stationary obstruction.

Rain

Precipitation in the form of water droplets that fall from clouds in the atmosphere, essential for sustaining terrestrial life, agriculture, and maintaining ecosystems.

Scatter Diagram

A graphical representation that displays the relationship between two quantitative variables, using dots to represent individual data points.

Linear Model

A statistical model that assumes a linear relationship between input variables (independent variables) and a single output variable (dependent variable).