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A company has issued $ 1 5 0 million of Debt and $ 3 0 Million of Common shares and $ 2 5 Million of

A company has issued $150 million of Debt and $30 Million of Common shares and $25 Million of Pref shares The debt is bonds, which have a coupon rate of 6% and YTM of 9%. The company has a beta of 1.4 and has a market rate of 9% and 5% risk free rate. The Preferred shares pay a fixed dividend of $5 and the price is $100. The tax rate for the company is 40%.

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