Calculate the Share Effect on the Incremental EPS for the Following

question 91

Multiple Choice

Calculate the share effect on the incremental EPS for the following instrument: Convertible bonds outstanding, yield of 5% and coupon rate of 5%
$2,000,000
Issue date
January 1, 2021
Maturity date
December 31, 2028
Conversion rate for each $1,000 bond
40 ordinary shares
Income tax rate
25%

• A)0.63
• B)0.94
• C)75,000
• D)80,000

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Definitions:

Cadavers

The bodies of deceased individuals, often used for medical research or educational purposes.

Medical Schools

Educational institutions or faculties that provide education and training to students to become qualified medical practitioners.

Model Hospice

A benchmark or exemplar healthcare facility providing compassionate care and support to terminally ill patients and their families.

Inpatient Care

The type of institutionalized care that is required, for example, as an illness progresses and that may be provided in a hospice facility.