Calculate the income effect on the incremental EPS for the following instrument: $\begin{array}{|l|r|}
\hline\text { Face value of } 10,000 \text { preferred shares with } & \
\text { dividend rate of } 5 \% & \$ 5,000,000 \
\hline \text { Conversion rate for each preferred share } & 5 \text { ordinary shares } \
\hline \text { Income tax rate } & 30 \%\\hline
\end{array}$
A)$1.00
B)$75,000
C)$175,000
D)$250,000

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The Answer of Calculate the income effect on the incremental EPS for the following instrument: $\begin{array}{|l|r|}
\hline\text { Face value of } 10,000 \text { preferred shares with } & \
\text { dividend rate of } 5 \% & \$ 5,000,000 \
\hline \text { Conversion rate for each preferred share } & 5 \text { ordinary shares } \
\hline \text { Income tax rate } & 30 \%\\hline
\end{array}$
A)$1.00
B)$75,000
C)$175,000
D)$250,000

Calculate the Income Effect on the Incremental EPS for the Following