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1.A convertible bond issue should not be included in the diluted earnings per share computation as if the bonds had been converted into common stock

1.A convertible bond issue should not be included in the diluted earnings per share computation as if the bonds had been converted into common stock if the effect of its inclusion is

Select one:

a. Either Dilutive or Anti-dilutive

b. Dilutive, but not Anti-dilutive

c. Anti-dilutive, but not Dilutive

2.

Loredo Company's net income for 2017 is $50,000. The only potentially dilutive securities outstanding were 1,000 options, outstanding all year, each exercisable for one share at $7. None have been exercised, and 10,000 shares of common were outstanding during 2017. The average market price of Loredo's stock during 2017 was $10. DEPS for 2017 is, to the nearest cent:

Select one:

a. $4.81

b. $4.55

c. $4.72

d. $4.95

e. $4.85

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