**Finance homework question. Cannot copy so screen shot pasted below. Thanks!

e Do Homework Michael Bonincontri Windows Internet Explorer P https mathxl.com Michael Bonincontri 2/3/16 8:28 PM Homework: Assignment 4 Overview P7-4 (similar to) o of 10 complete Exercise Score: 0 of 10 pts Assignment Score: 0% (0 of 100 pts) Convertible preferred stock Valerian Corp. convertible preferred stock has a fixed conversion ratio of 5 common shares 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 $50 per share and pays a dividend of $1.00 per share per year 1 2 3 a. Judging on the basis of the conversion ratio and the price of the common shares, what is the current conversion value of each preferred share? b. If the preferred shares are selling at $245 each, should an investor convert the preferred shares to common shares c. What factors might cause an investor not to convert from preferred to common stock? a. The current conversion value of each preferred share is $L- (Round to the nearest dollar Enter your answer in the answer box, then click Check Answer 2 parts remaining Clear All Check Answer Save 7:28 PM Course Hom Finance Qu Do Homewo 2/3/2016