MV Pfd Corporation has debt with a coupon rate of5% and a yield to maturity of7%, a cost of equity of15% and a cost of preferred stock of10%. 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 a25% premium over its book value pershare, while the common stock trades at$20 pershare, with 8 million shares outstanding. The tax rate is30%.

What is thisfirm's value of preferredstock, P(for use in theweights)?

a)150mil

b130mil

c)60mil

d)80mil

e)15mil

f)160mil

g)140mil

h)75mil

i)180 mil