$=$$$1,000$ per bond$$18\mathrm{.}00\frac{?}{\text{s}\text{h}\text{a}\text{r}\text{e}}$ for the common stock shares and $$7\mathrm{.}50\frac{?}{\text{s}\text{h}\text{a}\text{r}\text{e}}$ for the

preferred stock shares. The bonds are currently trading $at94\%of$ par. The company pays $no$ dividend $on$ its common stock but

does pay $a$ $$0\mathrm{.}375\frac{?}{\text{s}\text{h}\text{a}\text{r}\text{e}}$ dividend $on$ its preferred stock. The coupon rate $on$ its bonds $is5\mathrm{.}20\%$ and the bonds will mature $26$ years

from today. The company's Beta $on$ its common stock $is1\mathrm{.}1$ and $it$ has $a21\mathrm{.}0\%$ marginal tax rate. The current $T-$bill rate $is4\mathrm{.}5\%$ and

the market return $is13\mathrm{.}0\%.$