The capital structure of Anderson, Inc. has slowly gotten more complex over the

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The capital structure of Anderson, Inc. has slowly gotten more complex over the years, although not as complex as at some other firms. Still, we now rely on both debt and common stock. In fact, not too long ago we issued $6,000,000 in bonds. They were issued at $1,000 par value and all the bonds are still outstanding with 25 years until maturity. They pay a 6% coupon rate and interest payments are made semiannually. As of yesterday, they were selling for 98.5% of par. In addition, over the years we have issued 130,000 shares of common stock that currently sell for $35 per share. If the beta of Anderson

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