7:16 docs.google.com Carpet Inc. is considering issuing a 10-year, 8.5% convertible bond. Each bond could be converted into 20 shares of common stock. The conversion price would be set at 18% premium. Currently, Carpet Inc. stock price is equal to $42 per share and it is expected to pay $3 dividends in the coming year. Also, the expected constant growth rate of the stock is 5.5%. 1. What is Carpet Inc.'s conversion price of its convertible bonds? a $49.56 b. $50.00 O c. $44.31 d. $43.26 e. None of the above f + 24 7:16 docs.google.com b. $50.00 O c. $44.31 d. $43.26 e. None of the above 2. What is the conversion value at t=5? a. $973.79 O b. $1,295.46 O c. $1,097.85 O d. $1.921.72 e. None of the above Page 4 of 8 Back Next Never submit passwords through Google Forms. This form was created inside of Lebanese International University. Report Abuse Google Forms