1/ A convertible bond is currently selling for $1,057. It is convertible into 18 shares of common which presently sell for $54 per share. The conversion premium is

$72

$54

$18

$85

2/ A $1,000 par value bond with a conversion price of $40 has a conversion ratio of (Round your answer to 2 decimal places.)

25.00 shares

35.33 shares

15.25 shares

14.77 shares

3/ Mirrlees Corp. has 9,000 6% bonds convertible into 35 shares per $1,000 bond. Mirrlees has 600,000 outstanding shares. Mirrlees has a tax rate of 35%. The average Aa bond yield at time of issue was 15%. Compute basic earnings per share if after-tax earnings are $730,000. (Round your answer to 2 decimal places.)

$0.13

$0.91

$1.22

$-0.29