During the current year, a company had outstanding 140,000 shares of common stock and 5,000 convertible bonds. Each bond has a stated rate of 5%, face value of $1,000 and can be converted to 45 common shares. Net income was $260,000 and the tax rate is 30%. Are the bonds dilutive or anti-dilutive? Why

Answer rating: 100% (QA)

To determine if the convertible bonds are dilutive or antidilutive we need to calculate the impact o... View the full answer