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ABC stock is selling for $ 3 0 per share and has plans to pay $ 1 in dividends, and the dividends are expected to

ABC stock is selling for $30 per share and has plans to pay $1 in dividends, and the dividends are expected to grow at the constant growth rate of 5.00%. The company is considering issuing a 15-year convertible bond that would be priced at its $1,000 par value. The bonds would have an 7.00% annual coupon, and each bond could be converted into 20 shares of common stock. The required rate of return on an otherwise similar nonconvertible bond is 9.00%. What is the estimated floor price of the convertible at the end of Year 5?
A) $765.77
B) $835.81
$879.80
D) $871.65
E) $972.41
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