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Consider if a corporation has 10,000 shares of common stock outstanding and net income of 1,000,000. Tax rate is 40%. If there are 2,000 convertible
Consider if a corporation has 10,000 shares of common stock outstanding and net income of 1,000,000. Tax rate is 40%. If there are 2,000 convertible bonds outstanding each at $1,000 face amount paying 5% interest annually. What would diluted EPS be if each bond is convertible into two shares of common stock??
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