mikkleson mining stock is selling for $40 per share and has an expected dividend in the coming year of $2.00, and has an expected constant growth rate of 5.00%. the company is considering issuing a 10-year convertible bond that would be priced at its $1,000 par value. the bonds would have an 8.00% annual coupon, and each bond could be converted into 20 shares of common stock. the required rate of return on an otherwise similar nonconvertible bond is 10.00%. what is the estimated floor price of the convertible at the end of year 3? a. $879.80 b. $835.81 c. $972.41 d. $926.10
