If Convertible Bonds Are Dilutive,the Interest Expense Added Back to the Numerator

question 11

Multiple Choice

If convertible bonds are dilutive,the interest expense added back to the numerator in calculating diluted earnings per share is

• A) net of tax,and includes discount and premium amortization.
• B) net of tax,but does not include discount and premium amortization.
• C) not net of tax,but includes discount and premium amortization.
• D) not net of tax,and does not include discount or premium amortization.

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Definitions:

Positive Reinforcement

The presentation of a stimulus following a given behavior in order to increase the frequency of that behavior.

Operant Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment, a principle established by B.F. Skinner.

Behavior

The actions or reactions of an individual, usually in relation to the environment or stimuli; how one conducts oneself.

Radio Channel

A specific frequency or band of frequencies allocated for transmitting and receiving radio waves.