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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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notsponge [240]
I don’t understand your question
4 0
3 years ago
Fact Pattern 18-B1
Roman55 [17]

Answer:

D) substantial, but not complete, performance

Explanation:

Even though Moses breached his contract with Noelle, most part of the contract was performed. The most significant part of the contract was the apartment itself, not the air conditioning system. For a material breach to exist Moses should have failed to perform in a greater way, not just the air conditioning. Probably Noelle should get a discount on the price of the apartment so that she can get the air conditioning system installed.

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6 0
3 years ago
Ash, Inc., has declared a dividend of $6.30 per share. Suppose capital gains are not taxed, but dividends are taxed at 20 percen
alexira [117]

Answer:

$89.41

Explanation:

Data provided in the question:

Dividend declared = $6.30 per share

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Selling price of the stock = $94.45

Now,

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= $6.30 × ( 1 - 0.20 )

= $5.04

Thus,

Ex-dividend price = Selling price - Aftertax dividend

or

Ex-dividend price = $94.45 - $5.04

or

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8 0
3 years ago
Suppose there are two cities that have rent controlled apartments. In one city (Albany) all apartments are subject to rent contr
PilotLPTM [1.2K]

Answer:

Which of the following is most likely to be true?

A

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4 0
3 years ago
A partnership intentionally created and recognized, orally or in writing is known as a(n) _____ partnership.
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hope this helps! 
8 0
3 years ago
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