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Problem 1 ( 10 Marks) Room Inc. has issued bonds, common and preferred shares to raise capital and invest in R&D. Currently the preferred shares

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Problem 1 ( 10 Marks) Room Inc. has issued bonds, common and preferred shares to raise capital and invest in R\&D. Currently the preferred shares have a price of $30 per share and have consistently provided a $2 per share dividend. There are 50 with a stock price of $90 per share. The company's common also has 50,000 common shares outstanding ten yeartanding, and it has a 20% tax rate. Given this information, rate. The company has 5,000 bonds

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