(Net income + [...] − Preferred dividends )
________________________________________________________________________________________
(Weighted average number of shares outstanding + Additional common shares that would have been issued at conversion)
Answer
After tax interest on convertible debt
Tags
#cfa-level-1 #fra-introduction #income-statement
Question
Diluted EPS wit convertible debt =
(Net income + [...] − Preferred dividends )
________________________________________________________________________________________
(Weighted average number of shares outstanding + Additional common shares that would have been issued at conversion)
Answer
?
Tags
#cfa-level-1 #fra-introduction #income-statement
Question
Diluted EPS wit convertible debt =
(Net income + [...] − Preferred dividends )
________________________________________________________________________________________
(Weighted average number of shares outstanding + Additional common shares that would have been issued at conversion)
Answer
After tax interest on convertible debt
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6.3.2. Diluted EPS When a Company Has Convertible Debt Outstanding reholders would increase by the after-tax amount of interest expense on the debt converted.
Thus, the formula to calculate diluted EPS using the if-converted method for convertible debt is:
Equation (3)
<span>Diluted EPS=
(Net income + After tax interest on convertible debt − Preferred dividends )
________________________________________________________________________________________
(Weighted average number of shares outstanding + Additional common shares that would have been issued at conversion)
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