Hughes Technology has net income of $450,000 in the current fiscal year. There are 100,000 shares of
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Hughes Technology has net income of $450,000 in the current fiscal year. There are 100,000 shares of common stock outstanding along with convertible bonds, which have a total face value of $1,200,000. The $1,200,000 is represented by 1,200 different $1,000 bonds. Each $1,000 bond pays 6 percent interest and was issued when the average A-bond yield was 10 percent. The conversion ratio is 20. The firm is in a 34 percent tax bracket. Calculate Hughes' EPS.
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Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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