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Case
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Reference no. 9B04B013
Subject category: Finance, Accounting and Control
Authors: Dan Shadd (Ivey Business School, Western University); Christine Wiedman (Ivey Business School, Western University)
Published by: Ivey Publishing
Originally published in: 2004
Version: 2004-11-26
Length: 21 pages
Data source: Published sources
Topics: Diluted earnings per share; Earnings management; Contingent convertible bonds; Corporate financial reporting
Share a link: https://casecent.re/p/14165
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Abstract

An equity analyst at an investment dealer is preparing a research note on Omnicom, a large advertising conglomerate, that will go out to the firm''s institutional and retail clients. Overall, she is optimistic about the company''s business prospects but is concerned about one issue. Omnicom has issued a series of contingent convertible notes that could be exchanged for common stock once share prices reach pre-determined levels. The company was not required to include the convertible notes in its diluted earnings per share calculations. The analyst didn''t want any surprises for her clients and must decide whether or not to include the convertible bonds in her earnings per share calculation.
Location:
United States
Industry:
Business services
Size:
Large
Other setting(s):
2004
Teaching note
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Reference no. 8B04B13
Subject category: Finance, Accounting and Control
Authors: Dan Shadd (Ivey Business School, Western University); Christine Wiedman (Ivey Business School, Western University)
Published by: Ivey Publishing
Originally published in: 2004
Version: 2004-08-12
Length: 12 pages
Data source: Published sources
View full details

About

Abstract

An equity analyst at an investment dealer is preparing a research note on Omnicom, a large advertising conglomerate, that will go out to the firm''s institutional and retail clients. Overall, she is optimistic about the company''s business prospects but is concerned about one issue. Omnicom has issued a series of contingent convertible notes that could be exchanged for common stock once share prices reach pre-determined levels. The company was not required to include the convertible notes in its diluted earnings per share calculations. The analyst didn''t want any surprises for her clients and must decide whether or not to include the convertible bonds in her earnings per share calculation.

Settings

Location:
United States
Industry:
Business services
Size:
Large
Other setting(s):
2004

Related

Teaching note
-
Reference no. 8B04B13
Subject category: Finance, Accounting and Control
Authors: Dan Shadd (Ivey Business School, Western University); Christine Wiedman (Ivey Business School, Western University)
Published by: Ivey Publishing
Originally published in: 2004
Version: 2004-08-12
Length: 12 pages
Data source: Published sources
View full details