Below is the balance sheet (book value) for JP Products Inc. (JPP). The preferred stock currently sells for $15 per share and the common stock for $20 per share. There are 1,000 common shares and 100 preferred shares outstanding. Bonds are currently selling for $935.80. Assets Liabilities and Owners Equity Cash & short term $1,000 Bonds, coupon =8%, $10,000 securities paid semi-annually (maturity = 10 years) Accounts Receivable 3,000 Preferred stock (par 2,000 value $20 per share) Inventories 7,000 Common Stock 10,000 Plant & equipment 21,000 Retained earnings 10,000 Total $32,000 Total $32,000 Preferred shares pay a 7.5% dividend. The beta of the common stock is 1.5, the market risk premium is 7%, and the risk free rate is 4%. The company's tax rate is 40%