The Wolverine Corporation has a convertible preferred stock outstanding. The par value of this preferred stock is $100, and it pays a $10 dividend. The preferred stock is callable at 103 percent of par value. It has 10 years remaining until maturity and is convertible into 2.5 shares of common stock. The current common stock price is $42. Similar (quality and maturity) nonconvertible preferred stock sells at a price to yield 9 percent.

a. What is the conversion value of this preferred stock? b. What is the straight (nonconvertible) preferred stock value of this security?