1. ABC Corp issues convertible preferreds with a $25 par value and a $2.50 annual dividend. The conversion ratio on the preferred is 3 (3 common stocks for each preferred share). The market price of the preferred is $32 and $10 for the common shares.

a)What is the conversion value/price of the preferred?

b)What is the conversion premium?

c)Would you convert your shares at this price?

2. Suppose a 6% $25 par value retractable preferred is purchased at $24.25 and is retractable at the holder's option at $25 in 2 years and 6 months' rime. What is the pre-tax yield on this retractable?

3. Describe the differences between an index and an average.

4. List the 10 industry sectors that make up the S&P/TSX Composite Index. Choose and list one stock from the index that represents industry sector.