Calculate the Incremental EPS for the Following Instrument: Convertible Bonds

question 17

Multiple Choice

Calculate the incremental EPS for the following instrument: Convertible bonds outstanding, yield of 3% and coupon rate of 3%
$5,000,000
Issue date
January 1, 2021
Maturity date
December 31, 2028
Conversion rate for each $1,000 bond
25 ordinary shares
Income tax rate
30%

• A)$0.36
• B)$0.84
• C)$40.00
• D)$105,000

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