A Company with Convertible Bonds Outstanding Will Assume Hypothetical Conversion

question 76

Multiple Choice

A company with convertible bonds outstanding will assume hypothetical conversion at the earliest point of the year to compute EPS.The numerator is ________.

• A)increased by the interest paid during the fiscal year
• B)increased by the after-tax interest expense for the fiscal year
• C)decreased by the interest paid during the fiscal year
• D)decreased by the after-tax interest paid during the fiscal year

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