Question 1

WIth Reference to the Information Provided about SALMYIA Company:

What is the firm's BASIC EPS for 2019 (rounded to two decimal places)?

Select one:

a. $10

b. None of these answers

c. $11

d. $8

e. $1

(2)

WIth Reference to the Information Provided about SALMYIA Company:

IF CONVERSION of the CONVERTIBLE BONDS TAKES PLACE

What will the SAVING ON INTEREST NET OF TAX be for 2019?

Select one:

a. None of these answers

b. $7,000

c. $8,000

d. $10,000

e. $11,000

(3)

WIth Reference to the Information Provided about SALMYIA Company:

IF CONVERSION of the CONVERTIBLE BONDS TAKES PLACE

How many new Ordinary Shares will exist (i.e., after conversion)?

Select one:

a. 100,000

b. None of these answers

c. 75,000

d. 50,000

e. 25,000

(4)

WIth Reference to the Information Provided about SALMYIA Company:

IF CONVERSION of the CONVERTIBLE BONDS TAKES PLACE

What will the revised Net Income be (i.e., after conversion)?

Select one:

a. $520,000

b. $400,000

c. $508.000

d. None of these answers

e. $500,000

(5)

WIth Reference to the Information Provided about SALMYIA Company:

IF CONVERSION of the CONVERTIBLE BONDS TAKES PLACE

What will be the Preliminary Calculation of DILUTED EPS?

(NOTE: For this question: ignore the rule that DILUTED EPS must be less than or equal to BASIC EPS.

Round to Two Decimal Places

Select one:

a. $12.12

b. $6.77

c. $5.33

d. $10

e. None of these answers

(6)

WIth Reference to the Information Provided about SALMYIA Company:

What will be the REPORTED (i) BASIC EPS (ii) DILUTED EPS

NOTE: For this question you should show the actual numbers that the company would report on its Income Statement

Select one:

a. (i) Basic EPS = $10.00; (ii) Diluted EPS = $6.77

b. (i) Basic EPS = $11.00; Diluted EPS = $6.77

c. (i) Basic EPS = $10.00; (ii) Diluted EPS = $7.35

d. None of these answers

e. (i) Basic EPS = $6.77; (ii) Diluted EPS = $10.00

(7)

WIth Reference to the Information Provided about HAWALLY Company:

IF CONVERSION of the CONVERTIBLE BONDS TAKES PLACE

What will the SAVING ON INTEREST NET OF TAX be in 2019?

Select one:

a. $6,000

b. $9,000

c. $15,000

d. None of these answers

e. $14,000

(8)

WIth Reference to the Information Provided about HAWALLY Company:

IF CONVERSION of the CONVERTIBLE BONDS TAKES PLACE

What will the revised Net Income be (i.e., after conversion)?

Select one:

a. $609.000

b. $600,000

c. $520,000

d. $300,000

e. None of these answers

(9)

WIth Reference to the Information Provided about HAWALLY Company:

IF CONVERSION of the CONVERTIBLE BONDS TAKES PLACE

What will be the Preliminary Calculation of DILUTED EPS?

(NOTE: For this question: ignore the rule that DILUTED EPS must be less than or equal to BASIC EPS.

Round to Two Decimal Places

Select one:

a. $2.80

b. $3.04

c. None of these answers

d. $3.15

e. $3.07

(10)

WIth Reference to the Information Provided about HAWALLY Company:

What will be the REPORTED (i) BASIC EPS (ii) DILUTED EPS

NOTE: For this question you should show the actual numbers that the company would report on its Income Statement

Select one:

a. (i) Basic EPS = $3.00; (ii) Diluted EPS = $3.04

b. (i) Basic EPS = $3.04; Diluted EPS = $3.04

c. None of these answers

d. (i) Basic EPS = $3.00; (ii) Diluted EPS = $3.00

e. (i) Basic EPS = $10.00; (ii) Diluted EPS = $11.00