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MV Pfd Corporation has debt with a coupon rate of 5 % and a yield to maturity of 7 % , a cost of equity

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MV Pfd Corporation has debt with a coupon rate of 5 % and a yield to maturity of 7 % , a cost of equity of 15 % and a cost of preferred stock of 10 %. Its debt has a market value of $130 million and a book value of $150 million. The common equity has a book value of $80 million and the preferred stock has a book value of $60 million. The preferred stock is currently trading at a 25 % premium over its book value per share, while the common stock trades at $20 per share, with 8 million shares outstanding. The tax rate is 30 %. What is this firm's value of preferred stock, P(for use in the weights)? O A. $80 million O B. $60 million O C. $150 million O D. $180 million O E. $130 million O F $15 million O G. $140 million O H. $160 million $75 million O

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