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You own 6% preferred stock ($100 par value) and it has a conversion right of 10 shares for each of the preferred shares submitted for
You own 6% preferred stock ($100 par value) and it has a conversion right of 10 shares for each of the preferred shares submitted for conversion. The common stock price has just reached $15/share The required rate of return on similar issues of preferred stock is 6% What is the market price of your preferred stock? Should you convert?
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