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