On January 1, the company issued $1.5 million of five-year, 6% convertible bonds at par value. Each $1,000 bond is convertible into 100 common shares. A similar bond (without conversion feature) would have been issued at a market yield of 9%. On December 31, $200,000 worth of bonds were converted to common shares.Assume company follows ASPE. show the effect on debt equity ratio.