Erna Corp. has 7 million shares of common stock outstanding. The current share price is $73, and the book value per share is $8. Erna Corp. also has two bond issues outstanding. The first bond issue has a face value of $75 million, has a coupon of 8 percent, and sells for 98 percent of par. The second issue has a face value of $55 million, has a coupon of 9 percent, and sells for 107 percent of par. The first issue matures in 23 years, the second in 7 years.

a.	What are Erna