After a couple of years of operation, your farm and business model has proven vastly more successful than you had expected. You have listed shares of stock (common and preferred) on a local stock exchange and in addition, you have an outstanding bond issue. The most recent information about your farm's publicly traded securities is: - Debt: 100,000 bonds with a coupon rate of 5 percent and a current price of $1,200; the bonds have 10 years to maturity and a par value of $1,000. The bonds have annual coupon payments. - Preferred stock: 250,000 shares of preferred stock that pays $30 per share per year. The current price is $206 per share. - Common stock: 10,000,000 shares of common stock; the current price is $105 and the beta of the stock is 1.20. Additionally, you have obtained the following market information: The corporate tax rate is 20 percent; the market risk premium is 10 percent; and the risk-free rate is 3 percent. Exercise 3.1 Calculate the market values of the farm's outstanding debt, preferred stock, and common stock. Exercise 3.2 What is the market value of the farm's assets? Exercise 3.3 What is the yield-to-maturity ("YTM") of the farm's debt? Exercise 3.4 What is the required return on the farm's preferred stock? Exercise 3.5 What is the required return on the farm's common stock