The CCC (triple C) Venture has issued convertible preferred stock to its venture investors Each share of preferred stock is convertible into 0 80 shares of common stock and pays an annual cash dividend of $0 25 A If each share of preferred stock has a market value of $4, what is the minimum price that a share of the CCC Ventures common stock should be selling for (ignore the dividend yield on the preferred stock) B If a share of the CCC Ventures common stock is actually trading at $3 per share, what are the implied conversion terms Given the above actual conversion terms, explain how the common stock could be trading at $3 per share while the preferred stock is trading at $4 per share

Question: The CCC (triple C) Venture has issued convertible preferred stock to its venture investors. Each share of preferred stock is convertible into 0.80 shares of

The CCC (triple C) Venture has issued convertible preferred stock to its venture investors. Each share of preferred stock is convertible into 0.80 shares of and pays an annual cash of $0.25.
A. If each share of preferred stock has a market value of $4, what is the minimum price that a share of the CCC Venture’s should be selling for (ignore the yield on the preferred stock)?
B. If a share of the CCC Venture’s is actually trading at $3 per share, what are the implied conversion terms? Given the above actual conversion terms, explain how the could be trading at $3 per share while the preferred stock is trading at $4 per share.

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