Principles of Finance 2-2 Four years ago, Ideal Solutions issued convertible preferred stock with a par value of $50 and a stated dividend of 8

2 Four years ago, Ideal Solutions issued convertible preferred stock with a par value of $50 and a stated dividend of 8 percent. Each share of preferred stock can be converted to four shares of common stock at the option of the investor. When issued, the preferred stock was sold at par value such that Ideal raised $2.5 million to fund expansion of its operations. a.