An investor is looking at $50 par value convertible preferred shares with an indicated coupon rate of 6%. They are trading at $60 and each one is convertible into 3 common shares. The common shares are trading at $18 each, with a quarterly dividend of $.15

What is the conversion cost premium? 7.4% 10.0% 11.1% 13.4%

What are the years required to pay back the premium? A4.7 years b 5.1 years c 5.5 years d 6.7 years > D is the ans to the second questions, how to get that answer