Blooming Ltd. currently has the following capital structure: Debt: $2,500,000 par value of an outstanding bond that pays annually 12% coupon rate with an annual before-tax yield to maturity of 10%....

Blooming Ltd. currently has the following capital structure: Debt: $2,500,000 par value of an outstanding bond that pays annually 12% coupon rate with an annual before-tax yield to maturity of 10%. The bond issue has a face value of $1,000 and will mature in 25 years. Ordinary shares: 65,000 outstanding ordinary shares. The firm plans to pay a $7.50 dividend per share in the next financial year. The firm is maintaining a 3% annual growth rate in dividends, which is expected to continue indefinitely. Preferred shares: 40 000 outstanding preferred shares with a face value of $100, paying fixed the dividend rate of 14%. The company tax rate is 30%. Required: Complete the following tasks:Calculate the current value of the preferred share if the average return of the shares in the same industry is 12%