Organic Produce Corporation has 8.2 million shares of common stock outstanding, 570,000 shares of 7.2 percent preferred stock outstanding, and 182,000 of 8.4 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $64.70 per share and has a beta of 1.27, the preferred stock currently sells for $107.30 per share, and the bonds have 17 years to maturity and sell for 92.5 percent of par. The market risk premium is 6.9 percent, T-bills are yielding 5.6 percent, and the firm