HED co. is considering a new project that to produce a new line of product in 2022. The initial investment in 2021 for producing new products costs $250,000. The cash inflows during the next three years of the project are

Year	Cash inflows
2022	$90,000
2023	$110,000
2024	$120,000

The capital structure required for the project is from the firms capital with the following information:

Debt: 5,000 of 8% coupon bonds outstanding, 3 years to maturity, $1000 par value each and the bonds have Yield to maturity of 11% and make semiannual payment. Bank loans: $100,000 from AAA bank with the real interest rate is 10%. Common stock: 20,000 shares outstanding, last year dividend was $5 per share and this company expect to pay a dividend constant growth rate of 6% each year. Required rate of return on common stock is 13%.

Tax rate is 30%.

Required:

a. Calculate the value of bond and common stock.