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Rob wants to kiat his own rota He wants by finzace the pimpary using deity preferred stocks, and own me stocks. He has decided to

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Rob wants to kiat his own rota He wants by finzace the pimpary using deity preferred stocks, and own me stocks. He has decided to set up his capital structure with 40% debt, $56 preferred stocks, and $514 oncremon sucks, Market statistics: the risk-free rate is 2% and the market rate is 5% Suppose a bond pays $180 at the and of cach your forever, If 8%; is the relevant interest rate, what is the value of this invest out to you today ? Bond Prices 2. Rob wants to sell preferred stocks on the NYSE. His expected dividend is $1.$0, and the required rate of return on the stock is 8%%. At what price should Rob sell his preferred stock? Preferred stock price . 3. Rob also wants to issue common stocks with a beta of 1 4. His projected dividend is $0.87, and the growth rate of his company is projected at 15%. At what price should he sell his stocks? R. (required rate of return) Common stock price - 4. Rob wants to borrow $12,500,000 to get his restaurant built. It will be repaid in equal installments over the next 10 years at an 3.5% interestrate. Develop an amortization schedule for Rob. Year Payment Interest Principal Principal Balance 5 N 7 10

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