DNA Labs Inc. has a $1,000 convertible bond outstanding that can be converted into 60 shares of common stock. The common stock is currently selling for $28.60 a share, and the convertible bond is selling for $1,772.00. (Round the final answers to 2 decimal places.) a. What is the conversion value of the bond? Conversion value $ 1716.00 b. What is the conversion premium? Conversion premium $ 56.00 c. What is the conversion price? Conversion price $ Swift Shoe has convertible bonds outstanding that are callable at $1,045. The bonds are convertible into 21 shares of common stock. The stock is currently selling for $65.30 per share. a. If the firm announces that it is going to call the bonds at $1,045, what action are bondholders likely to take. They will probably convert the bonds to common shares. They will not probably convert the bonds to common shares. b. Assume that instead of the call feature, the firm has the right to drop the conversion ratio from 21 down to 19 after 5 years and down to 17 after 10 years. If the bonds have been outstanding for 4 years and 11 months, what will the price of the bonds be if the stock price is $68.20? Assume the bonds carry no conversion premium. (Round the final answer to 2 decimal places.) Bond price $ c. Further assume that you anticipate in two months that the common stock price will be up to $71.10. Considering the conversion feature, should you convert now or continue to hold the bond for at least two more months? O You should convert now. O You should hold on for two more months. B.C. Fisheries Ltd. has convertible preferred shares outstanding currently trading at $31.00. The preferreds pay an annual dividend of $2.00 and have a redeemable feature effective in two years. It is rated pfd-2, and competitive nonconvertible preferreds of the same risk class carry an 8 percent return. The conversion ratio is 1.25. The common stock is selling for $24.00 per share on the TSX Venture Exchange and pays an annual dividend of $0.60. a. What is the conversion value of the preferreds? Conversion value b. What is the dividend yield on the preferreds? (Do not round the intermediate calculations. Round the final answer to 1 decimal place.) Dividend yield on the preferred % c. What is the dividend yield on the common shares? (Do not round the intermediate calculations. Round the final answer to 1 decimal place.) Dividend yield on the common shares %