标题: Short cuts to problems [打印本页] 作者: sharksfan 时间: 2011-7-13 15:36 标题: Short cuts to problems
Hello All,
In the EPS section in the Income statement section, a quick way to determine if the convertible debt is dilutive is to simply calculate:
conv. debt interest (1-tax) / conv. debt shares.
If this is > basic EPS then not dilutive.
Similar short cuts must be all around the place but I simply can't seem to recollect them. I know there is one regarding a ratio in the Fixed Income/Derivatives/Alt Investments section. Something where a simply addition would give an answer of (say) 3 while the "proper" procedure would give 2.999. Anybody know what I am talking about?
Things like these are great time savers.
Could you please share similar things that you came across?
Thanks!
P作者: dcfox83 时间: 2011-7-13 15:36
Does anyone know which one Prodigal is talking about?作者: johnnyBuz 时间: 2011-7-13 15:36
Forward to spot rate conversions in FI.作者: orang3eph 时间: 2011-7-13 15:37
Thanks evol,
Guess that topic need to be revisited.
P作者: kamara5 时间: 2011-7-13 15:37
Whether the securities are dilutive or antidilutive before actually calculating diluted EPS:
conv debt:
[interest payment on conv debt * (1 - tax rate) / convertible debt number of shares] < basic EPS => dilutive security
[interest payment on conv debt * (1 - tax rate) / convertible debt number of shares] > basic EPS => antidilutive security
conv preferred stock:
[dividend on preferred stock / number of shares created if converted] < basic EPS => dilutive security
[dividend on preferred stock / number of shares created if converted] > basic EPS => antidilutive security
