Mirrlees Corp. has $3,000,000 bonds convertible into 50 shares per $1,000 bond. Mirrlees has 1,000,000 outstanding shares. Mirrlees has a tax rate of 21%. The average Aa bond yield at the time of issue was 10%. Compute the "diluted earnings per share" if after-tax earnings are $1,400,000. Multiple Choice O $1.33 O $1.25 O $1.42 O $1.17 Which of the following is the correct order of securities based on risk and return? (From most risk-return to least risk-return.) Multiple Choice Common stock, secured debt, subordinated debentures, preferred stock Preferred stock, common stock, subordinated debentures, secured debt Common stock, long-term government bonds, secured debt, subordinated debt Common stock, subordinated debentures, secured debt, Treasury bills O A firm's debt-to-equity ratio varies at times because Multiple Choice a firm will want to sell common stock when prices are high and bonds when interest rates are low. All of these are accurate statements. the market allows some leeway in the debt-to-equity ratio before penalizing the firm with a higher cost of capital. a firm will want to take advantage of timing its fund-raising in order to minimize costs over the long run