1/ A convertible bond is currently selling for $839. It is convertible into 14 shares of common which presently sell for $56 per share. The conversion premium is

$55

$14

$70

$56

2/ A $1,000 par value bond with a conversion price of $44 has a conversion ratio of (Round your answer to 2 decimal places.)

12.50 shares

33.06 shares

15.23 shares

22.73 shares

3/ Mirrlees Corp. has 11,000 6% bonds convertible into 42 shares per $1,000 bond. Mirrlees has 590,000 outstanding shares. Mirrlees has a tax rate of 40%. The average Aa bond yield at time of issue was 10%. Compute basic earnings per share if after-tax earnings are $750,000. (Round your answer to 2 decimal places.)

$0.13

$1.27

$-0.29

$0.91