GHI Trading is considering issuing additional preferred and common shares to raise Capital in order to modernize their factory. Their preferred shares currently pay an annual dividend of $$10\mathrm{.}50$ per share, with investors requiring a return of $12\%.$ Their common stock paid

a dividend of $$7\mathrm{.}50$ per share last year and it is expected that earnings and dividends will grow

by $15\%$ for the next three years before dropping to a constant rate of $10\%$ thereafter.

The required rate of return for common shareholders is $14\%.$

Required: Determine the current price of the company's preferred and common shares. $(10$ marks$)$