Please answer all

drop down in order:

1.

2.

3.

475.13

349.91

674.78

89.87

Cheung Zap Inc. just issued 17-year convertible bonds at a par value of $1,000. At any time before maturity, investors have the option to exchange their bonds for shares of Cheung's common stock at a conversion price of $62.40. Cheung's convertible bonds pay a 7.80% annual coupon, but if Cheung had issued straight-debt bonds (no conversion), it would have had to pay 13.00% annual interest. Based on the information available, complete the table: Value Conversion ratio of Cheung's bond issue: Pure-debt value of this convertible debt issue: Value of the convertible option: Cheung's common stock currently sells for $43 per share. Would an investor want to convert the bonds now? No Yes Suppose analysts expect Cheung to pay a dividend of $3.00 per share at the end of the year and for the dividend to grow at a constant rate of 3.5% per year. What is the expected conversion value five years from now? $3,186.77 $818.65 $1,227.98 $613.99 19.24 10.42 16.03 14.59 19.24 $524.87 $910.13 $650.09 $325.22