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Calculate the Incremental EPS for the Following Instrument A)$036
B)$0

Question 90

Multiple Choice

Calculate the incremental EPS for the following instrument:  Convertible bonds outstanding, yield of 3% and  coupon rate of 3%$5,000,000 Issue date  January 1,2015 Maturity date  December 31,2022 Conversion rate for each $1,000 bond 25 ordinary shares  Income tax rate 30%\begin{array}{l}\begin{array} {| l | r |} \hline\text { Convertible bonds outstanding, yield of } 3 \% \text { and }\\ \text { coupon rate of } 3 \% & \$ 5,000,000 \\\hline \text { Issue date } & \text { January } 1,2015 \\\hline \text { Maturity date } & \text { December } 31,2022 \\\hline \text { Conversion rate for each } \$ 1,000 \text { bond } & 25 \text { ordinary shares } \\\hline \text { Income tax rate } & 30 \% \\\hline\end{array}\end{array}


A) $0.36
B) $0.84
C) $40.00
D) $105,000

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