Portion of the Balance Sheet for ABC as of December 31, 2021. Long-term debt (bonds, at par) Preferred Stock (par $5) Common Stock (par value $1) Paid-In-Capital Retained earnings Total debt and equity $500,000,000 $200,000,000 $350,000,000 $100,000,000 $250,000,000 $1,400,000,000 Part I a. b. The bonds have a 6 percent annual coupon rate, payable semiannually, and a par value of $1,000. They mature on January 2, 2026. The yield to maturity is 8 percent, so the bonds now sell below par. What is the current market value of the firm's bonds? The Company has been growing at a 10% rate for a few years, and it just paid a dividend of D, $3.00 in December 2021. Due to a new product introduction, ABC expects to achieve a dramatic increase in its short-run growth rate of 20 percent annually for the next 2 years. After that time, growth rate is expected to return to the long-run constant rate of 5 percent forever. If the rate of return of equity is 15%, what would be the market value of equity? Currently, the preferred stock is selling for $50 per share, what would be the market value of the preferred stock today? Assume the dividend per share on preferred stock is $5; what is the required rate of return on the preferred stock. What is the market value capital structure of the company? Calculate the Weighted Average Cost of Capital (WACC). c. d. e. f