Adler Petroleum has the following capital structure:

Bonds $ 1,500,000

Preferred shares 3,000,000

Common shares 3,000,000

Retained earnings 4,000,000

Total: $ 11,500,000

The existing bonds have a coupon rate of 14 percent with 25 years left to maturity, but new 25 year bonds to be sold at par ($1,000) will have an annual yield rate of 10 percent. After tax flotation costs of 4 percent would be expected on the new issue. Please use annual analysis.

The existing preferred shares have a $40 face value and an annual dividend rate of 12 percent. New preferred shares having a $60 face value could be sold at a $58.50 with an 9.5 percent dividend rate. Flotation costs would be 3 percent after tax.

Outstanding common shares were originally sold for $2 per share. The market price is currently at $5 per share and they have a dividend of $0.20 D0. They have growth rate of 10%. New shares would be issued at 5 percent discount from the current market price of $5.00 and would require after-tax flotation expense of 6 percent.

Adlers tax rate is 25 percent and would require the sale of new common shares to fund new investments.

a) What is the value of Kd? Round to 2 decimal places.

b) What is the market value of the Bonds? Round to the nearest dollar. No commas.

c) What is the value of Kp? Round to 2 decimal places.

d) What is market value of the preferred shares? Round to the nearest dollar. No commas.

e) What is the value of Kn? Round to 2 decimal places.

f) What is the market value of the common shares? Round to the nearest dollar. No commas.