DIVIDENDS FOR C.S 1.26 LAST YEAR G=6% TAX 40% WC.S = 50% WB= 40% W.PS= 10% THE PRICE OF THE C.S IS 40$ FLOATATION COST 7 DOLLAR P,S D= 2 MARET PRICE 25, FOTATION COST AND UNDERVALUATION $5 BOND COUPON 10% MARKET P= 1200 FOTATION COST 2.5% 5 YEARS COST AFTER TAX