# Question 4.17: A Diluted EPS Calculation Using the If-Converted Method for ...

A Diluted EPS Calculation Using the If-Converted Method for Convertible Debt

Oppnox Company reported net income of $750,000 for the year ended 31 December 2005. The company had an average of 690,000 shares of common stock outstanding. In addition, the company has only one potentially dilutive security:$50,000 of 6 percent convertible bonds, convertible into a total of 10,000 shares. Assuming a tax rate of 30 percent, calculate Oppnox’s basic and diluted EPS.

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Question: 4.22

## Other Comprehensive Income in Analysis An analyst is looking at two comparable companies. Company A has a lower price/ earnings (P/E) ratio than Company B, and the conclusion that has been ...

As shown by the following table, part of the expla...
Question: 4.21

## Other Comprehensive Income Assume a company’s beginning shareholders’ equity is €200 million, its net income for the year is €20 million, its cash dividends for the year are €3 million, and there was ...

Solution to 1. C is correct. If the company’s actu...
Question: 4.20

## An Antidilutive Security For the year ended 31 December 2006, Dim-Cool Utility Company had net income of $1,750,000. The company had an average of 500,000 ... ## Verified Answer: If the 20,000 shares of convertible preferred had ... Question: 4.19 ## Diluted EPS for Options under IFRS Assuming the same facts as in Example 4-18, calculate the weighted average number of shares outstanding for diluted EPS under IFRS. ... ## Verified Answer: If the options had been converted, the company wou... Question: 4.18 ## A Diluted EPS Calculation Using the Treasury Stock Method for Options Hihotech Company reported net income of$2.3 million for the year ended 30 June 2005 and had an average of 800,000 common shares outstanding. The company has outstanding ...

Using the treasury stock method, we first calculat...
Question: 4.16

Question: 4.15