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Consider a firm that has: 1,000,000 common shares 200,000 preferred shares with market share price of $90 and annual coupon of $7.50 30,000 bonds maturing

Consider a firm that has: 1,000,000 common shares 200,000 preferred shares with market share price of $90 and annual coupon of $7.50 30,000 bonds maturing 10 years from now with 7% coupon rate, $1000 face value and YTM=5%. Has a corporate tax rate of T=30% Is expected to pay $4.50 dividends per common share next year and dividends are expected to grow at a constant rate of 3% per year forever The required return on equity is 15% The flotation costs of issuing new common equity is F=10% Find Debt, Equity, and Preferred Shares financing ratios, i.e., D/V, E/V, and P/V

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