Are the following statements true or false?

1. The effect of converting bonds into common stock will increase the number of common stock shares but earnings per share will remain the same.

2. Bond prices can be expected to rise if interest rates fall.

3. The preemptive right accorded common stock investors provides them with protection from dilution by requiring the issuer of the stock to provide them with the right to purchase enough stock from an additional issue of the same stock to maintain their percentage of ownership.