Case Narrative A firm's capital structure includes the following securities. It has 500,000 shares of common stock (equity) outstanding, selling for $20 per share and is expected to pay a dividend of $1, and has an expected growth rate of 1%. The preferred stock share price is $50 and which a $2 dividend which is not expected to grow. The current price of the bonds is $818, and the coupon rate is 5%. The bonds will mature in 10 years. 1. What is the market capitalization of the common stock (equity? Chapter 4 What is the cost (required rate of returny of the preferred stock? Chapter 7 3. What is the cost (required rate of return) of the common stock? Chapter 7 4. What is the cost yield to maturity of the bonds? Chapter 6 What caused the price of this bond to drop from its initial price of $1,000 to its current price of $818? 5. Chapter 6