3. Consider Higgins Production which has the following information about its capital structures: Debt - 4,500, 5 percent coupon bonds outstanding, $1,000 par value, 7 years to maturity, selling for 80 percent of par, the bonds make semi-annual payments Common Stock - 100,000 shares outstanding, selling for $35 per share; the beta is 1.20 Preferred Stock - 19,000 shares of 6 percent preferred stock outstanding, currently selling for $150 per share Market Information - 6 percent market risk premium and 4 percent risk-free rate.

Required: Calculate to the following if the company has a tax rate of 36 percent.

i. Total Market Value for the Firm

ii. After-tax cost of Debt

iii. Cost of Equity

iv. Cost of Preferred Stock

v. Weighted Average Cost of Capital