Four years ago, Ideal Solutions issued convertible preferred stock with a par value of $50 and a

Question:

Four years ago, Ideal Solutions issued convertible preferred stock with a of $50 and a stated of 8 percent. Each share of preferred stock can be converted to four shares of at the option of the investor. When issued, the preferred stock was sold at such that Ideal raised $2.5 million to fund expansion of its operations.
a. What is the annual per share on the preferred stock?
b. What is the conversion price of the preferred stock? When should an investor consider converting into ? (Ignore taxes and other costs that might be associated with conversion.)
c. If all investors convert their preferred stock to , how many new shares of will Ideal have outstanding? Common Stock
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A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...