What is convertible debenture? What is its effect on EPS?
Answer Posted / vishnu_mba87
Convertible debenture is one which can be converted into an
equity share after a chosen time period.
EPS is ratio of Profit After Taxes to No of Shares
Outstanding.
If a convertible debenture is converted into 2 equity
shares, then no of outstanding shares will increase which
leads to decrease in EPS
| Is This Answer Correct ? | 21 Yes | 1 No |
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