Given the following company information;

1. What is the market value of the debt? (2 decimal places)

2. What is the rate of return on the preferred stock? (2 decimal places)

3. What is the market value of the preferred stock? (2 decimal places)

$52 million 10% 19% semi-annually 32% Book Value of Debt YTM Coupon Coupon Payments Years Corporate Tax Rate # of Preferred Shares Price of Preferred Share Dividend per Preferred Shares of Common Shares Price of Common Share 1B of Common Stock Risk-Free Rate Market Return 1 million $20 $1.29 8 million