Maple Aircraft has issued a 5.25% convertible subordinated debenture due 2014. The conversion price is $61.00 and the debenture is callable at 103.25% of face value. The market price of the convertible is 90.00% of face value, and the price of the common is $55.50. Assume that the value of the bond in the absence of a conversion feature is about 64.00% of face value.

What is the conversion ratio of the debenture?

If the conversion ratio were 49.00, what would be the conversion price?

What is the conversion value?

At what stock price is the conversion value equal to the bond value?

How much is the convertible holder paying for the option to buy one share of common stock?

By how much does the common have to rise by 2014 to justify conversion?

When should Maple call the debenture?