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NEW QUESTION: 1
New Gestalt, Inc., a software firm had a net income of 1.7 million last year. It has 200,000 common shares and 300,000 convertible bonds with face value of 100 outstanding. The convertible bonds carry a coupon of 4% and can be converted one-for-one. The average stock price last year was 39 and the maximum price was 57. The effective interest rate on the convertible debt is 8%. New Gestalt issued 100,000 preferred shares with face value 100 and a coupon of 5% on March 31st of last year. Assume the convertible bonds are dilutive and that New Gestalt faces a 30% tax rate. Given the above, New Gestalt's Diluted EPS equals
________.
A. 7.51
B. 6.01
C. 7.45
D. 2.65
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Diluted EPS = (Net Income - Preferred dividends + interest on convertibles net of taxes)/(weighted # of common shares assuming convertible conversion) In this case, numerator = 1.7 million - 375,000 +
300,000*8%*100*(1-30%) = 3,005,000. The denominator equals 200,000 + 300,000 = 500,000. Therefore, Diluted EPS = 6.01. Note that the interest expense on the convertible bond is calculated using the effective interest rate, not the coupon rate.

NEW QUESTION: 2
Upon what condition will a transaction be directly called from a GUI stus?
A. The Function Type is set to S
B. The Function Type is set to T
C. The Transaction Type is set to T
D. The Function Code is left blank
Answer: B

NEW QUESTION: 3
When customers purchase HPE Proactive Care, what do they get beyond what they get with HPE Foundation Care?
A. help to better operate their current infrastructure and evolve to hybrid IT
B. help with keeping their hybrid infrastructure running
C. assigned, dedicated resources to help maximize performance
D. additional services tailored to the customer's solutions
Answer: D

NEW QUESTION: 4
A password history value of three means which of the following?
A. After three hours a password must be re-entered to continue.
B. Three different passwords are used before one can be reused.
C. The server stores passwords in the database for three days.
D. A password cannot be reused once changed for three years.
Answer: B
Explanation:
Password History defines the number of unique new passwords a user must use before an old password can be reused.