Company H is a high-growth company. The current price per share is RMB 20, the dividend per share just paid is RMB 0.377, and the expected dividend growth rate is 6%. The company urgently needs to...

Company H is a high-growth company. The current price per share is RMB 20, the dividend per share just paid is RMB 0.377, and the expected dividend growth rate is 6%. The company urgently needs to raise 50 million yuan and plans to issue 10-year convertible bonds. The bond value is 1,000 yuan each, the coupon rate is 5%, and the interest is paid once at the end of each year. The conversion price is RMB 25; the non-redemption period is 5 years. After 5 years, the redemption price of the convertible bond is RMB 1,050, and thereafter it will decrease by RMB 20 every year. Assume that the market interest rate for equal-risk ordinary bonds is 7%, and the company’s average income tax rate is 20%.