Market risk premium of 5.5% and tax rate of 40% where non is specified

4. You are analyzing a convertible preferred stock and have been given the following information: There are 50,000 preferred shares outstanding, with a face value of $100 and a 6% preferred dividend rate. The firm has straight preferred stock outstanding, with a preferred dividend rate of 9%. The preferred stock is trading at $105. Estimate the preferred stock and equity components of this convertible preferred stock. . 1