5 points 9. Dexter Inc. needs to raise $35 million to open a new branch in France. It currently has 2.5 million shares outstanding which sells for $28 and has an expected growth rate of 5% annually. The investment banker suggests to raise the needed capital by selling 15-year convertible debentures at $1,000 par value. The coupon rate will be equal to 7.5% and each debenture could be converted into 25 shares of stock. The bonds would be noncallable for 6 years after which they would be callable at a price of $1,160. This call price would decline by $6 per year in year 7 and thereafter. Assume that bonds may be called or converted only at the end of a year. Also, assume that the management would call eligible bonds if the conversion value exceeds 25% of par value. At what year do you expect the bonds will forced into conversion with a call? Year 10 Year 11 Year 12 Year 13 None of the above