1. A convertible bond is currently selling for $944. It is convertible into 17 shares of common which presently sell for $52 per share. The conversion premium is
$52
$69
$60
$17
2. Mirrlees Corp. has 8,000 6% bonds convertible into 41 shares per $1,000 bond. Mirrlees has 620,000 outstanding shares. Mirrlees has a tax rate of 40%. The average Aa bond yield at time of issue was 10%. Compute basic earnings per share if after-tax earnings are $730,000. (Round your answer to 2 decimal places.)
$1.18
$-0.29
$0.13
$0.91
3. Sen Corporation warrants carry the right to buy 6 shares of Sen common stock at $11.00 per share. The common stock has a current market price of $13.50 per share. The intrinsic or minimum value of one Sen warrant is (Round your answer to 2 decimal places.)
$16.50
$0
$10.00
$15.00