You are analyzing a convertible preferred stock with the following characteristics for the security:
• There are 50,000 preferred shares outstanding, with a face value of $100 and a 6% preferred dividend rate.
• The firm has straight preferred stock outstanding, with a preferred dividend rate of 9%.
• The preferred stock is trading at $105.
Estimate the preferred stock and equity components of this preferred stock. (You can assume that preferred stock has a perpetual life)