Calculate the Incremental EPS for the Following Instrument: Convertible Bonds

question 9

Multiple Choice

Calculate the incremental EPS for the following instrument: Convertible bonds outstanding, yield of 6% and coupon rate of 6%
$3,500,000
Issue date
January 1, 2021
Maturity date
December 31, 2028
Conversion rate for each $1,000 bond
40 ordinary shares
Income tax rate
30%

• A)1.05
• B)1.88
• C)40,000
• D)3.15

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Definitions:

Predictive Validity

The extent to which a score on a scale or test predicts future performance on a related task.

Sociosexuality

An individual's willingness to engage in sexual activity outside of a committed relationship.

Sexual Constraint

The suppression or regulation of sexual behavior by social, cultural, or personal factors; could also relate to internal or external mechanisms that restrict sexual expression.

Casual Acquaintances

Individuals one knows but with whom one does not have a deep or intimate relationship, often characterized by infrequent interaction.