Ryan Home Products, Inc., issued \($430,000\) of 8-percent convertible debentures. Each bond is convertible into 28 shares of common stock anytime before maturity.

a. Suppose the current price of the bonds is \($1,000\) and the current price of Ryan common is \($31.25\).

i. What is the conversion ratio?

ii. What is the conversion price?

iii. What is the conversion premium?

b. Suppose the current price of the bonds is \($1,180\) and the current price of Ryan common is \($31.25\).

i. What is the conversion ratio?

ii. What is the conversion price?

iii. What is the conversion premium?

c. What is the conversion value of the debentures?

d. If the value of Ryan common increases by \($2,\) what will the conversion value be?