The required rate of return on similar issues of preferred


You own 6% preferred stock ($100 par value) and it has a conversion right of 10 shares for each of the preferred shares submitted for conversion.

The common stock price has just reached $15/share

The required rate of return on similar issues of preferred stock is 6%

What is the market price of your preferred stock?

Should you convert?

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Finance Basics: The required rate of return on similar issues of preferred
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