Brooks Industries (BI) issued a forty-year bond exactly fifteen years ago to finance the purchase of a positive NPV project that had an initial cost of $1 billion. BI has 9,000,000 outstanding shares of common stock that pays a current dividend of $1.20 per share.

Determine the current market price of the bond if the coupon rate is 8.7% and the yield to maturity is now 7.3%.

Determine the market price of the common stock if BIs dividends are expected to grow by 5.2% and the required return on the common stock is 17.3%.