Rob Stevens is the chief executive officer of Isner Construction, Inc., and owns 800,000 shares of stock. The company currently has 4.8 million shares of stock and convertible bonds with a face value of $35 million outstanding. The convertible bonds have a conversion price of $38 and the stock is currently selling for $46.

a. What percentage of the firm’s common stock does Rob own?

b. If the company decides to call the convertible bonds and force conversion, what percentage of the firm’s common stock will Rob own? He does not own any convertible bonds.