Vickrey Technology Has Had Net Income of $1,500,000 in the Current

question 11

Multiple Choice

Vickrey Technology has had net income of $1,500,000 in the current fiscal year. There are 1,000,000 shares of common stock outstanding along with convertible bonds, which have a total face value of $8 million. The $8 million is represented by 5,000 different $1,000 bonds. Each $1,000 bond pays 4% interest. The conversion ratio is 30. The firm is in a 30% tax bracket. What is Vickrey's "diluted earnings per share?"

• A)$1.43
• B)$1.81
• C)$2.00
• D)None of these options

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Definitions:

Homo Floresiensis

An extinct species of small-statured humans that lived on the Indonesian island of Flores until approximately 50,000 years ago.

Hypotheses

Tentative explanations that can be tested through experimentation or observation.

Origin

The location or origin where something starts, originates, or is obtained from.

Genetic Diversity

The total number of genetic characteristics in the genetic makeup of a species, contributing to its ability to adapt to changing environments.