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Which is true regarding the effect that dilutive convertible

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Problem 1: Which of the following statements is true regarding the effect that dilutive convertible bonds have on the earnings per share computation?

Group of answer choices

Option 1: The number of shares would be converted is substracted from the denominator and interest net of tax is subtracted from the numerator.

Option 2: The number of share the bonds would be converted is added to the denominator and interest net of tax is added to the numerator.

Option 3: The number of shares the bonds would be converted is added to the denominator and interest net of tax is subtracted from the numerator.

Option 4: The number of share the bonds would be converted from the denominator and interest net of tax is added to the numerator.

Reference no: EM132808788

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