3. Jefferson requires $15 million to fund its current year's capital projects. Jefferson will finance part of its needs with $9 million in internally generated funds. The firms common stock market price is $120 per share. The firm's last dividends was $5 per share and is expected to grow at a rate of 11 percent annually for the foreseeable future. Another portion of the required funds will come from the issue of 9,375 shares of 12 percent $100 par preferred stock that will be privately placed. The firm will net $96 per share from the sale of these shares. The remainder of the funding needs will be met with debt. Five thousand 10-year $1,000 par bonds with a coupon rate of 15 percent will be issues to net the firm $1,020 each. Interest will be paid annually on the bonds. The firm's tax rate is 30 percent