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Executrain Has 50,000,7%,bonds Outstanding for the Second Half of the Year.Each

Question 55

Multiple Choice

Executrain has 50,000,7%,bonds outstanding for the second half of the year.Each $1,000 bond,sold July 1 at par,is convertible into 20 shares of common stock.The corporate tax rate is 40%.What is the incremental income per common share?


A) $0.70
B) $1.05
C) $1.50
D) $2.10

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