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5. You are given with the following information statements of a public rm Benny in the airline industry concurrently. (Notice that all negative numbers are

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5. You are given with the following information statements of a public rm Benny in the airline industry concurrently. (Notice that all negative numbers are parenthesized). The firm has issued 12 million shares of common stock with current market price as $55fper share, the expected dividend is $6.90fper share with 3.2% growth rate, 300,000 shares of preferred stocks with promised preferred dividend and preferred stock price as $3.20!per share and $14.5!per share, respectively. The firm also has currently, 2 million 4.2%coupon bonds with $1,000 face value that pays the coupons semi-annually. The current bond price is $820!per bond. The bonds are expected to mature at 2025. Answer the following questions: a) If using the market prices for assessment on rates of return, what is the rate of return the common stock of Benny? What is the rate of return for their preferred stocks? 0) What is the bond's yield to maturity of the firm's corporate bond? c) Suppose you are also given with the following financial statements of Benny for the past three years. What are the historical returns on equity for this company for the past three years? Is the firm Benny doing well from the perspectives of shareholders? Why or why not? d) Is this firm well-diversified with their arrangement of capital? That is, are they well diversified with different sources of capital? e) Based on the given information, provide your ratios analyses. Apply the Du-Pont model and interpret your results for the firm's performance

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