valerian corp. convertible preferred stock has a fixed conversation ratio of 9 common shared per 1 share of preferred stock. the preferred stock pays a dividend of $5.00 per share per year. the common stock currently sells for $15 per share and pays a dividend of $2.00 per share per year.

a. On the basis of the conversian ratoo and the price of the comlom shares, what is the current conversion value of each preferred share?

b. If the preferred shares are selling at $132 each, should an investor convert the preferred shares to common shares?

c. What factors might cause an investor not to convert feom preferred to common stock?