Consider the following company,

Book Value of Debt $$64$ million

YTM $5\%$

Coupon $10\%$

Coupon Payments semi$-$annually

Years $10$

Corporate Tax Rate $38\%$

# of Preferred Shares $2$ million

Price of Preferred Share $$27$

Dividend per Preferred Shares $$1\mathrm{.}03$

# of Common Shares $7\mathrm{.}5$ million

Price of Common Share $$16$

$\backslash$beta of Common Stock

$1\mathrm{.}5$

Risk$-$Free Rate $2\%$

Market Return $14\%$

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.

$54\mathrm{.}27$

Correct response: $88\mathrm{.}94\backslash$pm $0\mathrm{.}03$ million

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

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.