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I need your help. please 2.Company Phad the following capital structure at year-end after dosing. 6% Bonds $10,000,000 3% Preferred Stock 20,000,000 on Stock ($10

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I need your help. please

2.Company Phad the following capital structure at year-end after dosing. 6% Bonds $10,000,000 3% Preferred Stock 20,000,000 on Stock ($10 par) 10,000,000 Paid-In Capital in Excess of Par Retained Earnings 35,000,000 15,000,000 a. Required: The return on common equity was 9%. Determine the net income assuming common stock dividends were declared and paid. b. Using your answer in (a), compute return on investment. Assume that the bond interest is the only interest expense and the tax rate is 50%. Use year-end balance sheet figures. c. Compute basic earnings per share. Assume the same number of common shares throughout the whole year. d. Compute book value per share. If the market value is $78, compute the price/earnings ratio using your answer to (C). f. Would you expect the market price to be higher than the book value per share? e

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