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4. Consider the following information (15 points). Book Value Unit Price # of Units Coupon Maturity Rate Bonds $30 mm $980 30,000 9% 10 years

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4. Consider the following information (15 points). Book Value Unit Price # of Units Coupon Maturity Rate Bonds $30 mm $980 30,000 9% 10 years Debentures 50 mm 900 50,000 8% 10 years Preferred Stock 20 mm 90 200,000 10% Common Stock 100 mm 40 6,000,000 100 mm Retained Earnings Assume a tax rate of 40%. The expected common stock dividend one year from now is $2 and it is expected to grow at 8% per annum. Determine the ATWACOC

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