1. You have been asked to calculate diluted earnings per share for Blue Co. Blue has convertible debt outstanding. Blue's basic earnings per share is $2.00. What is a reasonable estimate of Blue's diluted earnings per share?a. it is equal to $2.00 per shareb. it is less than $2.00 per sharec. it is greater than $2.00 per shared. none of the above2. $1,000,000 of Blue Co. convertible bonds were converted into 100,000 shares of Blue Co. common stock. What is the effect on Blue's debt to assets ratio?a. the debt to assets ratio will decreaseb. the debt to assets ratio will increasec. the debt to assets ratio will not changed. the impact on the debt to assets ratio cannot be determined.Please answer both parts about Blue for my exam.