Question: 1. Primary EPS is changed to fully diluted EPS for outstanding convertible bonds byAdding to the denominator the shares the bonds can be converted intoAdding
1. Primary EPS is changed to fully diluted EPS for outstanding convertible bonds byAdding to the denominator the shares the bonds can be converted intoAdding to the numerator the interest expense on the bonds, net of tax savings from the bonds interest expenseConvertible bonds are not considered when computing fully diluted EPSBoth a and b are used in the computation of fully diluted EPS
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