Christian Debt Recovery

Debt: 40,000 bonds with a 7 percent coupon rate and a current price quote of
119.80. The bonds have 25 years to maturity. 150,000 zero coupon bonds with
a price quote of 18.2 and 30 years until maturity.

Preferred Stock:
100,000 shares of 4 percent preferred with a current price of $ 81 and a
par value of $100.

Common Stock:
1,800,000 shares of common stock. The current price is $65, and the beta of
the stock is 1.1

Market:
The corporate tax rate is 40 percent, the market risk premium is 7percent,
and the risk-free rate is 4 percent.
consider YTM = 5.53 %