Alicia Inc. has a $1,000 face value convertible bond issue that is currently selling in the market for $950. Each bond is exchangeable at any time for 38 shares of the companys stock. The convertible bond has a 5.3% coupon, payable semiannually. Similar nonconvertible bonds are priced to yield 7%. The bond matures in 20 years. Stock in Alicia sells for $24 per share. a-1 What is the conversion ratio? Conversion ratio a-2 What is the conversion price? (Round the final answer to 2 decimal places. Omit "$" sign in your response.)

a-3 What is the conversion premium? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Conversion premium %

b-1 What is the straight bond value? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit "$" sign in your response.)

Straight bond value $

b-2 What is the conversion value? (Omit "$" sign in your response.)

Conversion value $

c. What would the stock price have to be for the conversion value and the straight bond value to be equal? (Do not round intermediate calculations. Round the final answer to 3 decimal places. Omit "$" sign in your response.)

Stock price $

d. What is the option value of the bond? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit "$" sign in your response.)

Option value $