P7-4 Convertible preferred stock Stanley Industries has a fixed conversion ratio of four common shares per one share of preferred stock. The preferred stock pays a divi- dend of 4.00 per share per year. The common stock currently sells for 10.00 per share and pays a dividend of 1.25 per share per year. a. Considering the conversion ratio and the price of the common shares, what is the current conversion value of each preferred share? b. If the preferred shares are selling at 43.00 each, should an investor convert the preferred shares to common shares? c. What factors might cause an investor not to convert from preferred to common stock