Saunders Investment Bank has the following financing out Debt: 40,000 bonds with a 7% coupon rate and a current pr 150,000 zero coupon bonds with a price quote of 185 and fi years to maturity. Preferred Stock: 100,000 shares of 4% preferred stock with Common Stock: 1,600,000 shares of Common Stock; the cu Newly issued stock: 200,000 shares of Common Stock were rate 2%. Knowing that the firm keeps 60% of its earnings ar Market: The corporate tax rate is 40%, the market risk prem Saunders Investment Bank has the following financing out Debt: 40,000 bonds with a 7% coupon rate and a current pr 150,000 zero coupon bonds with a price quote of 185 and fi years to maturity. Preferred Stock: 100,000 shares of 4% preferred stock with Common Stock: 1,600,000 shares of Common Stock; the cu Newly issued stock: 200,000 shares of Common Stock were rate 2%. Knowing that the firm keeps 60% of its earnings ar Market: The corporate tax rate is 40%, the market risk prem