R.J. Miller & Company has the following securities outstanding:

* Common stock, \($0.10\) par value

* Convertible preferred stock

* Convertible debentures The convertible preferred stock carried a conversion ratio of 3-to-1 (each share of preferred stock may be converted into three shares of common stock), whereas the convertible debentures carried a conversion ratio of 46-to-1 (each debenture may be converted into 46 shares of common stock). During the year, R.J. Miller & Company declared and issued a ten percent common stock dividend, followed by a 2-for-1 forward common stock split.

Calculate the new conversion ratios for the convertible preferred stock and convertible debentures following the common stock dividend and common stock split. Why is it appropriate to adjust the conversion ratios of the convertible preferred stock and the convertible debentures following the stock dividend and stock split?