Calculate the Incremental EPS for the Following Instrument: Convertible Bonds

question 71

Multiple Choice

Calculate the incremental EPS for the following instrument: Convertible bonds outstanding, yield of 6% and coupon rate of 6%
$3,000,000
Issue date
January 1, 2019
Maturity date
December 31, 2024
Conversion rate for each $1,000 bond
20 ordinary shares
Income tax rate
30%

• A)0.63
• B)1.88
• C)40,000
• D)2.10

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Definitions:

Watson

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