What is convertible debenture? What is its effect on EPS?
Answer Posted / prasanna
Convertible debentures can be converted into equity shares
of the issuing company after a predetermined period of
time.
When the Convertible securities are exercised the number of
outstanding equity shares increases, and thus the EPS
decreases. 'Diluted Earnings Per Share' or 'Diluted EPS'
is a performance metric that is used to gauge the quality
of a company's EPS if all convertible securities were
exercised.
Is This Answer Correct ? | 2 Yes | 1 No |
Post New Answer View All Answers
What are BASEL III Norms?
Tell some of the projects you did in the past?
what is capitalization? What is its importance?
What do you consider your most significant strengths?
We hear regularly that all bank branches are turning cbs. What is cbs?
Share your views on Plastic currency?
What is Digital India?
Is there any possibility of any outside force to manipulate the market?
What do you know about PACs?
What Would You Consider Important For A Bank Clerk, Being The First Point Of Contact With Customers?
What are Preference Shares?
Explain the different ways you can operate your accounts?
Who are auditors? What are their roles?
What is the reason for sudden slump in value of rupee and bourses?
The CEO of a $500 million company has called you, her investment banker. She wants to sell the company. She wants to know how much she can expect for the company today.