A Company with Convertible Bonds Outstanding Will Need to Adjust

question 29

Multiple Choice

A company with convertible bonds outstanding will need to adjust the denominator of the EPS equation.The adjustment will consist of the ________.

• A)number of bonds in the the debt issue
• B)conversion ratio times the number of bonds outstanding net of taxes
• C)conversion ratio times the number of bonds outstanding
• D)number of bonds issued during the current year

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