You are considering three investments. The first is a bond that is selling in the market at RM1,200. The bond has a RM1,000 par value, pays interest at 14 percent, and is scheduled to mature in 12 years. For the bonds of this risk class you believe that a 12 percent rate of return should be required. The second investment that you are analyzing is a preferred stock (RM100 par value) that sells for RM80 and pays an annual dividend of RM12. Your required rate of return for this stock is 14 percent. The last investment is a common stock (RM35 par value) that recently paid a RM3 dividend. The firm