Consider the following company,

Book Value of Debt $$59$ million

YTM $7\%$

Coupon $5\%$

Coupon Payments semi$-$annually

Years $20$

Corporate Tax Rate $38\%$

# of Preferred Shares $1$ million

Price of Preferred Share $$22$

Dividend per Preferred Shares $$1\mathrm{.}09$

# of Common Shares $9$ million

Price of Common Share $$17$

$\backslash$beta

of Common Stock

$0\mathrm{.}5$

Risk$-$Free Rate $2\%$

Market Return $11\%$

What is the market value of the debt? Enter your answer in terms of millions and rounded to $2$ DECIMAL PLACES.

Enter your response below.

$46\mathrm{.}40$

Correct response: $46\mathrm{.}4\backslash$pm $0\mathrm{.}03$ million

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What is the rate of return on the preferred stock? Enter you answer as a percentage and rounded to $2$ DECIMAL PLACES. Do not include the percentage sign in your answers.

Enter your response below.

$4\mathrm{.}95$

Correct response: $4\mathrm{.}95\backslash$pm $0\mathrm{.}01\%$

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What is the market value of the preferred stock? Enter your answer in terms of millions.

Enter your response below.

$22$

Correct response: $22\backslash$pm $0\mathrm{.}01$ million

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What is the rate of return of the equity? Enter your answer as a percentage. Do not include the percentage sign in your answers.

Enter your response below.

$6\mathrm{.}50$

Correct response: $6\mathrm{.}5\backslash$pm $0\mathrm{.}01\%$

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What is the market value of the equity? Enter your answer in terms of millions.

Enter your response below.

Number

million

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PLEASE ANSWER THE LAST QUESTION ABOUT MARKET VALUE $OF$ EQUITY

Consider the following company,

What is the market value of the debt? Enter your answer in terms of millions and rounded to $2$ DECIMAL PLACES.

Enter your response below.

million

Click "Verify" to proceed to the next part of the question.