The Saunders Investment Bank has the following financing outstanding. \begin{tabular}{|c|c|} \hline Debt: & \begin{tabular}{l} 50,000 bonds with a coupon rate of 4.6 percent and a current price \\ quote of 106.1 ; the bonds have 12 years to maturity and a par value of \\ $1,000.16,900 zero coupon bonds with a price quote of 26.8,28 years \\ until maturity, and a par value of $10,000. Both bonds have semiannual \\ compounding. \end{tabular} \\ \hline \begin{tabular}{l} Preferred \\ stock: \end{tabular} & \begin{tabular}{l} 145,000 shares of 3.9 percent preferred stock with a current price of \\ $92 and a par value of $100. \end{tabular} \\ \hline \begin{tabular}{l} Common \\ stock: \end{tabular} & \begin{tabular}{l} 2,100,000 shares of common stock; the current price is $82 and the beta \\ of the stock is 1.10 . \end{tabular} \\ \hline Market: & \begin{tabular}{l} The corporate tax rate is 25 percent, the market risk premium is 6.6 \\ percent, and the risk-free rate is 3.5 percent. \end{tabular} \\ \hline \end{tabular}