ABCs capital structure is made of 50% Ordinary Equity, 30% Preferred Stock and 20% Debt.

ABCs dividend payout ratio is 40 precent, and the current expected net income is $650,000.

ABCs marginal tax rate is 30% and investors expect the dividends and earning to grow at the rate of 6 precent per year in perpetuity.

ABC just paid a dividend of $5 per share on its 750,000 issued ordinary shares and is currently trading at $40 per share.

ABC has issued 300,000 new preference shares with the market price of $60 per share. ABC is committed to pay a dividend of $9 per share on its preference shares.

ABC has issued 12,000 corporate bonds with face value of $1000 and 15 years to maturity that currently are traded at their face value. ABC offers an annual coupon amount of $100 for each bond.

1) Determine the market value of ordinary equity, preference shares and debt

2) Determine the cost of each capital structure component of ABC