Find the conversion value of a convertible preferred stock that carries a conversion ratio of 1.8, given that the market price of the underlying common stock is $40.00 a share. Would there be any conversion premium if the convertble preferred were selling at $90.00 a share? If so, how much (in dollar and percentage terms)? Also, explain the concept of conversion parity, and then find the conversion parity of this issue, given that the preferred trades at $90.00 per share The conversion value of the convertible preferred stock is S(Round to the nearest cent.) Would there be any conversion premium if the convertible preferred were selling at $90.00 a share? (Select the best answer below.) O Yes O No The conversion premium in dollars is(Round to the nearest cent.) The conversion premium as a percentage is (Round to two decimal places) Explain the concept of conversion parity. (Select the best answer below.) O A. Conversion parity (conversion equivalent) is the length of time it takes for the buyer of a convertible to recover the conversion premium from the extra current income earned on the convertible. O B. Conversion parity (conversion equivalent) is the price at which a convertible would trade if it were nonconvertible and priced at or near the prevailing market yields of comparable nonconvertible issues. O C. Conversion parity (conversion equivalent) is an indication of what a convertible issue would trade for if it were priced to sell on the basis of its stock value. O D. Conversion parity (conversion equivalent) is the price at which the common stock would have to sell in order to make the convertible security worth its current market price