3. Convertible preferred shares This price, known as the conversion price, is equal to the purchase price of the preferred share, divided by the conversion ratio. Conversion price =ConversionnatioP0 Which of the following most closely values the value of a convertible preferred share? Pconvertibic0=kD+1Pconverible0=kDV0Pconverible0=kD+V0Pcomverible0=kD True or False: Valuing callable preferred shares is similar to valuing convitible preferred shares. True False