Ask Question
BusinessBusiness
21 July, 04:57

If convertible bonds were issued at a discount, when computing diluted EPS, the amortization of the bond discount: Multiple Choice Will increase the numerator. Will decrease the numerator. Will have no effect. May increase or decrease the numerator, depending on the amortization method used.

+5
Answers (1)
  1. 21 July, 05:32
    0
    Answer: Option 1

    Explanation:

    If the convertible bonds are issued at discount then it will increase the numerator. Convertible bonds yields a fixed interest income. When the convertible bonds are issued at a discount then they can be converted into shares and discount is considered in the purchasing price of the stock.

    In amortized bond the each payment goes towards the interest as well as the principle amount. Amortization reduces the credit risk as the principle is repaid on maturity or on default of the firm.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “If convertible bonds were issued at a discount, when computing diluted EPS, the amortization of the bond discount: Multiple Choice Will ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Which management function includes measuring and setting performance objectives for the employees of a manufacturing business? The function includes measuring and setting performance objectives for the employees,
Answers (1)
A vehicle manufacturing company decides to hire 35 employees for its new servicing branch located in texas. a total of 90 eligible applicants apply for the job of which 50 are white and 40 are black.
Answers (1)
In the context of trust and job performance, the ability to focus reflects the degree to which employees can devote their attention to work, as opposed to engaging in workplace politics or saving themselves from problems like abusive supervision.
Answers (2)
Susan has a chance to take two weeks of unpaid leave from her job to go on a trip to Antarctica that will cost $5,000. She earns $2,000 per week. She estimates that the trip will be worth twice what she has to pay for the pleasure it will give her.
Answers (1)
What is the definition of risk? A. putting money into more than one investment B. amount made in profit on an investment C. using borrowed funds for an investment D. possibility of losing money on an investment
Answers (1)
New Questions in Business
Mai and Chuck have been divorced since 2012. They have three boys, ages 6, 8, and 10. All of the boys live with Mai and she receives child support from Chuck. Mai and Chuck both work and the boys need child care before and after school.
Answers (1)
Yaro Company owns 30% of the common stock of Dew Co. and uses the equity method to account for the investment. During 2018, Dew reported income of $250,000 and paid dividends of $80,000. There is no amortization associated with the investment.
Answers (1)
Assume you work for an employer who will contribute $60 a week for the next 20 years into a retirement plan for your benefit. At a discount rate of 9 percent, what is this employee benefit worth to you today?
Answers (1)
A restaurant manager should consider his own tastes when developing his menu.
Answers (1)
Magnetic-Optical Corporation offers a variety of share-based compensation plans to employees. Under its restricted stock unit plan, the company on January 1, 2021, granted restricted stock units (RSUs) representing 4 million of its $1 par common
Answers (1)
Home » Business » If convertible bonds were issued at a discount, when computing diluted EPS, the amortization of the bond discount: Multiple Choice Will increase the numerator. Will decrease the numerator. Will have no effect.
Sign Up Forgot Password?