1. A $1,000 par convertible debenture has a conversion price for common stock of $37 per share. With the common stock selling at $46, what is the conversion value of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
2. Jefferson Mills just paid a dividend of $1.70 per share on its stock. The dividends are expected to grow at a constant rate of 9 percent per year, indefinitely. What will the price of this stock be in 7 years if investors require a 16 percent rate of return?
3. Whistle Stop Trains pays a constant $15 dividend on its stock. The company will maintain this dividend for the next 15 years and will then cease paying dividends forever. What is the current price per share if the required return on this stock is 14 percent?