Portion of the Balance Sheet for Company as of December 31, 2022. Book Value Long-term debt (bonds, at par) $20,000,000 Preferred stock (par $5) $24,000,000 Common stock (5 par) $44,000,000 Retained earnings $12,000,000 Equity $56,000,000 Total Debt, Pref. Stock, and Equity $100,000,000

a. The bonds have a 6 percent annual coupon rate, payable semiannually, and a par value of $1,000. The bonds were issued in 2020 and will mature in 2030. The yield to maturity is 12 percent. What is the current market value of the firm's bonds?

b. The Company has been growing at a 10% rate for several years, and it just paid a dividend of D 0 $3.00 in December 2022. Due to a new product introduction, expects to achieve an increase in its short-run growth rate of 20 percent annually for the next 2 years. After that time, growth rate is expected to return to the long- run constant rate of 5 percent forever. If the rate of return of equity is 15%, what would be the market value of equity?

c. What should the dividend yield be today?