(25 points) 3. The McFarland Company has the following book value balance sheet: Current Assets $30,000,000 Current Liabilities $20,000,000 $40,000,000 Long-Term Debt Common Stock (1 million shares) Fixed Assets $70,000,000 Retained Earnings Total Assets $100,000,000 Total Liabilities and Equity 1,000,000 $39.000.000 $100,000,000 The long-term debt consists of 40,000 bonds outstanding with a par value of $1,000 each. The annual coupon rate on the bonds is 6%, paid semiannually, and the bonds have 20. years to maturity. The current rate of interest (yield to maturity) on new, 20-year debt, r is 10%. What is the market price of one bond? McFarland's common stock currently sells for $60 per share. Calculate McFarland's market value capital structure (percent of debt financing and equity financing in the market value capital structure.) Market Value Capital Structure is: (fill in the blanks) Market Value Long-term debt (40,000 bonds) s Market Value Common equity $60,000,000- mee% Total Market Value debt and equity The bonds have a value of The total market value of the long-term debt is 40,000(SValue of Debt)- s There are 1 million shares of stock outstanding, and the stock sells for $60 per share. Therefore, the market value of the equity is $60,000,000