Evelyn International Limited has issued preferred stock ($45 par value) that pays an annual dividend of $4.50. The preferred stock matures in 16 years. At that time, holders of the stock will receive, at their option, either $45 or one share of common stock with a value up to $58. If the common stock is trading at a price above $58, the preferred stockholders will receive a fractional share of common stock worth $58. If the market requires a 19%