HRE Mining Limiteds (HRE) is considering a major gold exploration project in South Sudan. Costs of financing have been declining recently causing the finance department to consider sourcing capital through debt and equity issues. The companys bonds will mature in six years with a total face value of $100 million, paying a half yearly coupon rate of 10% per annum. The yield on the bonds is 15% per annum. The market value for the companys preference share is $4.75 per unit while the ordinary share is currently worth $1.85 per unit. The preference share pays a dividend of $0.4 per share. The beta coefficient for the ordinary share is 1.4. No issue costs will be incurred by the company. The market risk premium is estimated to be 12% per annum and the risk-free rate is 4% per annum. The company is subject to a 30% corporate tax rate and intends to issue 200,000 preference shares and 5,000,000 ordinary shares. HREs current balance sheet shows the following information for bonds and shares:

	$ (Million)	Number On Issue (million)
Preference shares	3	1.5
Ordinary shares	15	15
Bonds	100	100,000

Using the information provided, calculate the market values for the financing sources for HRE. (7.5 marks)