Erna Corp. has 8 million shares of common stock outstanding. The current share price is $74, and the book value per share is $5. Erna Corp. also has two bond issues outstanding. The first bond issue has a face value of $80 million, has a coupon of 9 percent, and sells for 95 percent of par. The second issue has a face value of $60 million, has a coupon of 10 percent, and sells for 108 percent of par. The first issue matures in 24 years, the second in 8 years.

a.	What are Erna