What is this? firm value of preferred? stock

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MV Pfd Corporation has debt with a coupon rate of? 5% and a yield to maturity of? 7%, a cost of equity of? 15% and a cost of preferred stock of? 10%. Its debt has a market value of? $130 million and a book value of? $150 million. The common equity has a book value of? $80 million and the preferred stock has a book value of? $60 million. The preferred stock is currently trading at a? 25% premium over its book value per? share, while the common stock trades at? $20 per? share, with 8 million shares outstanding. The tax rate is? 30%

What is this? firm's value of preferred? stock, P? (for use in the? weights)?

a)150mil

b130mil

c)60mil

d)80mil

e)15mil

f)160mil

g)140mil

h)75mil

i)180 mil

Reference no: EM132700878

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