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3. (20 points) The Farkhod Abdurakhimo Company has the following book value balance sheet: Current Assets $30,000,000 Current Liabilities $20,000,000 Long-Term Debt (S1000 par value)

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3. (20 points) The Farkhod Abdurakhimo Company has the following book value balance sheet: Current Assets $30,000,000 Current Liabilities $20,000,000 Long-Term Debt (S1000 par value) $40,000,000 Common Stock (1 million shares) S 1,000,000 Fixed Assets $70,000,000 Retained Earnings $39.000.000 Total Assets $100,000,000 Total Liabilities and Equity $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 market rate of interest (yield to maturity) on 20-year debt, rd is 10%. What is the current market price of one bond? Abdurakhimo's common stock currently sells for $60 per share. Calculate Abdurakhimo's market value capital structure (percent each 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 $ % Market Value Common equity Total Market Value debt and equity 100.00% Calculate the market value of the bonds today as: 1-0079)s +SFaceValue(1+r) - 1.-Sinterse1-(+7)

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