7. Five years ago Hemingway Inc. issued 6,000 30-year bonds with par values of

$1,000 at a coupon rate of 8%. The bonds are now selling to yield 5%. The company also has 15,000 shares of preferred stock outstanding that pay a dividend of $6.50 per share. These are currently selling to yield 10%. Its common stock is selling at $21, and 200,000 shares are outstanding. Calculate Hemingway’s marketvalue–

based capital structure.