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标题: Questions on Dilluted EPS [打印本页]

作者: atate2007    时间: 2013-4-3 07:34     标题: Questions on Dilluted EPS

Let’s say you get a Diluted EPS question during the real exam that includes all three items: convertible preferreds, convertible debt and warrants.
Are you going to bother calculating the dilutive effect of each of the three separately to make sure they’re not antidilutive? Are you going to do a quick “back of the napkin” calculation (say: say, dividing the par value of the convertible bonds by the number of shares they can be converted into and comparing that to the ending stock price)?
Or are you just going to assume that if they give you a question with all three, all three will be dilutive (unless, for example, the options are out of the money…)?
作者: Ionutzakis    时间: 2013-4-3 07:40

I don’t know but I sure hope I am good enough at these where I can do the quick test to see if the individual parts are dillutive. I will be assuming nothing.
作者: Kiakaha    时间: 2013-4-3 07:45

I will skip it and come back to it
作者: MythosHF    时间: 2013-4-3 07:51

inthemoney warrants always dillutive
作者: siavosh    时间: 2013-4-3 07:56

If they give you the average market value and end year value of the warrants which do you use?
作者: scruge    时间: 2013-4-3 08:07

Yeah, I think I am thinking of the same question. I’m pretty sure you always use year end.
作者: edgeon    时间: 2013-4-3 08:12

Schweser said to use the average
Exam 3 afternoon session #51 pg 284 volume 1
作者: busprof    时间: 2013-4-3 08:18

I am pretty sure it was average because I remember thinking “That doesn’t make sense…”
作者: giakhanh39    时间: 2013-4-3 08:23

We have to use average.




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