Cheung Zap Inc. just issued seven-year convertible bonds at a par value of $1,000. At any time before maturity, investors have the option to exchange their bonds for shares of Cheung's common stock at a conversion price of $68.16. Cheung's convertible bonds pay a 8.52% annual coupon, but if Cheung had issued straight-debt bonds (no conversion), it would have had to pay 14.20% annual interest. Based on the information available, complete the table: Cheung's common stock currently sells for $42 per share. Would an investor want to convert the bonds now? Yes No Suppose analysts expect Cheung to pay a dividend of $4.00 per share at the end of the year and for the dividend to grow at 5% per year. What is the expected conversion value five years from now? $3,653.38 per share $786.31 per share $1,179.46 per share