What is the dividend in 2015

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You own 1,000 shares of cumulative convertible preferred stock with a par value of $100, and an $8 annual dividend. The shares are convertible into 5,000 shares of the company's common stock[5 common shares of each share of preferred].

a) If you paid $96 per share, what is your current yield?

b) If the common stock is trading at $30 per share, does it pay to convert?

c) The common stock is trading at $25 per share, what would be your gain or loss if you converted and sold the common stock?

d) If no preferred dividends are declared in 2013 and 2014, what is the dividend in 2015?

Reference no: EM132443414

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