When a Company's Only Potential Common Shares Are Convertible Bonds

question 111

Multiple Choice

When a company's only potential common shares are convertible bonds:

• A) Diluted EPS will be greater if the bonds are actually converted than if they are not converted.
• B) Diluted EPS will be smaller if the bonds are actually converted than if the bonds are not converted.
• C) Diluted EPS will be the same whether or not the bonds are converted.
• D) The effect of conversion on diluted EPS cannot be determined without additional information.

---

Definitions:

George Ritzer

An American sociologist known for his contributions to the sociology of consumption, globalization, and the concept of McDonaldization of society.

Social Life

The interactions, activities, and relationships that occur between individuals in society.

Feminist Question

Involves inquiries and debates centered around women's rights, gender equality, and the examination of societal structures from a feminist perspective.

Sexual Difference Theory

Refers to theories in various disciplines that focus on the differences between the sexes, often in terms of social, cultural, and psychological aspects.