During Blue Inc., a furniture store, issued two different series of bonds, details of which follow:
First issue: $ bonds, at par, each convertible into common shares.
Second issue: $ bonds, at par, each convertible into common shares.
For the year ended December the company had net income of $ Throughout common shares were
outstanding; none of the bonds were converted or redeemed. The company's tax rate was
Calculate the aftertax interest paid on the bonds.
Aftertax interest paid $
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Calculate an incremental per share effect for the bonds. Round EPS to decimal places, eg
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Rank the potentially dilutive securities from most dilutive to least dilutive.
bonds
bonds
