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pychu [463]
3 years ago
11

If convertible bonds were issued at a discount, when computing diluted EPS, the amortization of the bond discount: Multiple Choi

ce Will increase the numerator. Will decrease the numerator. Will have no effect. May increase or decrease the numerator, depending on the amortization method used.
Business
1 answer:
Brums [2.3K]3 years ago
6 0

<u>Answer:</u> Option 1

<u>Explanation:</u>

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.

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What is the equity beta for a firm with asset beta equal to 0.9, and D/E ratio of 0.4, and tax rate equal to 35%?
NNADVOKAT [17]

Answer:

the equity beta of the firm is 1.134

Explanation:

The computation of the equity beta is shown below:

Equity beta is

= Asset beta × [1 + (1 - tax rate) × Debt-equity ratio]

= 0.9 × [1 + (1 - 0.35) × 0.4]

= 0 9 × 1.26

= 1.134

Hence, the equity beta of the firm is 1.134

We simply applied the above formula so that the correct value could come

And, the same is to be considered

3 0
3 years ago
The Borio Company had an asset with an $8 book value and a $7 market value; it decided to distribute the asset as a property div
ankoles [38]

Answer:

The net income will decrease and also the total assets will also decrease

Explanation:

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As the asset value is down the entry is asset (credit) and loss on asset (debit)

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7 0
3 years ago
Match the jobs with the education requirements.
muminat

Answer: See explanation

Explanation:

• clinical psychologist - Ph.D. with lIcensure or certification, depending on the state in which you Iive.

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The cosmetologist is an individual who works in the beauty industry and their role is to give individuals a better appearance and make them more beautiful. Such people need to go to vocational school and also require state licensure to practice.

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4 0
3 years ago
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Elena L [17]

Answer:

C) the client's objectives, financial resources, and the character of the account

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7 0
3 years ago
Organizations use ________ to identify where their process expectations differ from sap capabilities. select one:
Dvinal [7]
Organizations use gap analysis to identify where their process expectations differ from sap capabilities. 

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