please note that I posted these all questions at same time since they are related to same given. you cansider them as multi post

Given the following information for Johnson company, answer questions 9 to 17 below: Johnson is a family firm that is specinlized in manufacturing electrical equipment. It has 1 million shares outstanding distributed as follows: Name of the shareholder Number of shares Mr. Tom Johnson 500.000 Mrs. Kate Johnson 350,000 Others 150,000 The company has a bank loan of S400,000 carrying an interest rate of 11%. The investment banker has suggested to raise $600,000 in capital in order to pay back the loan and use the remaining funds for other investments. He suggested the following two options: Option Description Option A Sell of common stocks at $30 Sell of 9% convertible bonds. Ench converted into 25 shares of Option B common stocks. Conversion price $40. The following are extracts of Johnson's latest financial statements in 31/12/2019: Assets Balance Sheet of Johnson Company (31/12/2019) Liabilities and Equity Current linbilities $650,000 Common stock (par $10) $10,000,000 Undivided profits $1,230,000 Total assets $11,880,000 $11,880,000 Total liabilities and equity Income Statement of Johnson Company (31/12/2019) EBIT $1,782,000 Interest expenses $44,000 EBT 51,738,000 Taxes (35%) 5608,300 Net income SL 129,700 5 points 9. What would be the current liabilities amount under option A? SO $600,000 $400,000 $250,000 None of the above 10. What would be the total equity under option A? 5 points $9.750,000 $10,600,000 $11,830,000 $12,080,000 None of the above 5 points 11. If the firm chooses option B, how many shares are to be converted? 0 15,000 shares III o 11. If the firm chooses option B, how 5 points many shares are to be converted? * 15,000 shares 20,000 shares 25,000 shares 30,000 shares O None of the above 12. What is the amount of change in 5 points total assets if the firm chooses option B (after conversion) ?* $200,000 $280,000 $300,000 $330,000 O None of the above 5 points 13. Assuming that Mr. Tom and Mrs. Kate didn't purchase any new stock, what would be their ownership percentage under options B respectively (after conversion)? * 49.02%; 35.00% 34.48%; 49.26% 34.31%; 49.62% 49.26%; 34.48% None of the above 5 points 14. Assuming that EBIT will be equal to 15% of total assets, what will be the firm's interest expenses under option A?* $0 $35,100 $44,000 $54,000 None of the above 5 points 15. Also assuming that EBIT is equal to 15% of total assets, what will be the firm's Earning per share under option B (after conversion)? * $1.13 $1.15 $1.16 O $1.20 None of the above 5 points 16. If the firm chooses option A, by how much would its net income change? * ($31,500) ($10,300) $48,100 $53,200 None of the above 5 points 17. What will be the change in debt ratio if the firm chooses option B (after conversion)? * 02.98% O (1.35%) 5.21% O (3.40%) O None of the above