1. Livewell, Inc. has convertible bonds. Use the following data to determine their conversion ratio. Maturity 20 years, stock price $20, Par value $1,000, conversion price $25, Annual coupon 9%, straight debt yield 12%. Round to he nearest whole dollar.
2. You purchased 250 shares of a particular stock at the beginning of the year at a price of $87.25. The stock paid a dividend of $1.15 per share, and the stock price at the end of the year was $94.86. What was your dollar return on this investment?