1A: A convertible bond is currently selling for $695. It is convertible into 15 shares of common which presently sell for $42 per share. The conversion premium is

$65

$42

$57

$15

1B: Mirrlees Corp. has 8,000 6% bonds convertible into 44 shares per $1,000 bond. Mirrlees has 580,000 outstanding shares. Mirrlees has a tax rate of 40%. The average Aa bond yield at time of issue was 13%. Compute basic earnings per share if after-tax earnings are $770,000. (Round your answer to 2 decimal places.)

$-0.29

$0.91

$1.33

$0.13

1C: Sen Corporation warrants carry the right to buy 6 shares of Sen common stock at $10.00 per share. The common stock has a current market price of $15.25 per share. The intrinsic or minimum value of one Sen warrant is (Round your answer to 2 decimal places.)

$0

$33.00

$31.50

$26.50