4. Referring to Willerton Industries of the previous problem, the company’s long-term debt is comprised of 20-year $1,000 face value bonds issued 7 years ago at an 8%

coupon rate. The bonds are now selling to yield 6%. Willerton’s preferred is from a single issue of $100 par value, 9% preferred stock that is now selling to yield 8%.

Willerton has 4 million shares of common stock outstanding at a current market price of $31. Calculate Willerton’s market-value–based capital structure.