Question
A company's balance sheets show a total of $30 million long-term debt with a coupon rate of 9 percent that matures in 30 years and
A company's balance sheets show a total of $30 million long-term debt with a coupon rate of 9 percent that matures in 30 years and market price of 900 dollar The and the debt has a total current market value of $25 million. The balance sheets also show that that the company has 10 million shares of stock. The current stock price is $6 per share. risk free is 0.05 market return is 0.12 and beta is 1.125,. The company has 2 million shares of preferred stock with market price30 dollars and dividends of 0.15 of 90 dollar par taxes are 40% what is the total value of the capital"? what is the weight of the bond what is weight of the stocks
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