You are given the following information concerning Parrothead Enterprises:

Debt:	10,600 7.1 percent coupon bonds outstanding, with 24 years to maturity and a quoted price of 108. These bonds pay interest semiannually.
Common stock:	305,000 shares of common stock selling for $66.10 per share. The stock has a beta of 1.02 and will pay a dividend of $4.30 next year. The dividend is expected to grow by 5.1 percent per year indefinitely.
Preferred stock:	9,600 shares of 4.55 percent preferred stock selling at $95.60 per share.
Market:	A 10.4 percent expected return, a risk-free rate of 5.1 percent, and a 34 percent tax rate.