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

question 80

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 percent interest. The conversion ratio is 30. The firm is in a 30 percent tax bracket. What is Vickrey's diluted earnings per share?

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

Identify strategies to enhance personal influence within a meeting.

Understand the importance of clear agendas and minutes for effective meetings.

Comprehend the process and benefits of consensual decision-making.

Learn the structured approaches to decision-making, including the standard agenda form.

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Definitions:

ATC

Average Total Cost, which is the total cost of production divided by the quantity of output produced.

Total Revenue

The total income generated by a firm or economy from its sale of goods and services, calculated before any expenses are subtracted.

Profit Maximizing

The process by which a firm determines the price and output level that returns the greatest profit, often involving analysis of marginal costs and marginal revenues.

Shutdown

The short-term decision by a firm to cease production due to operating at a loss, where total revenue is not covering variable costs.