Balance Sheet (Book Value) LT Debt $40,000,000 Preferred Stock $10,000,000 Common Stock $20,000,000

Number of Bonds Outstanding 40,000 bonds

Number of Preferred Shares Outs. 180,000 shares

Number of Common Shares Outs. 2,400,000 shares

Bond Price $827.50 Coupon rate on bonds 5.00% Years Remaining Until Maturity 12 Years Leah Capindo to Everyone (09:36) Risk Premium of Stocks over Bonds 5.0% Growth rate of Dividends 7.0% Dividend on Preferred Stock $3.50 Price of Preferred Stock $45.00 Treasury Note Rate 4.0% Expected market return 9.0%