The XY Company has 1800 bonds outstanding that have a market price of $990 each and a face value of $1000. floatation cost is 0.015 the bond pays coupon of 0.055 quarterly for 16 years. The company also has 6,000 shares of preferred stock at a market price of $33 and dividends 0.6 each par value 20 dollars . The common stock is priced at $25 a share it is undervalued by $1.5 and there are 40000 shares outstanding, par value is 5 dollars the stock is pays $1 and will continue to grow at a rate of 0.03 .

TAXES ARE 0.3