Mr Nikhil Yadav works as analyst at HSBC in Bangalore, HSBC has invested in Bhavya pharma that is proposing to come out with a new issue of preferred stock. Bhavya pharma had earlier issued one round of preferred stock couple of years ago. Mr Alok, CEO HSBC venture asked Nikhil to analyse the conversation value protection for the existing preferred stock (that were issued earlier by Bhavya pharma) in the context of the new issue. he has gathered the following. .existing conversion price = rs 18 .hypothesised market price= rs 48 (this is the share value without new shares) .new offering price =rs 15 .shares outstanding (before the new issue) =500,000 shares .new shares =100,000 shares

calculate the new conversion prive using the (CPF) and market price formula (MPF). show your calculations.