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a. Here is the condensed 2020 balance sheet for Skye Computer Company ( in thousands of dollars). Compute the market value weights using the information
| a. Here is the condensed 2020 balance sheet for Skye Computer Company (in thousands of dollars). | |||||||||
| Compute the market value weights using the information provided below. Only include appropriate sources. | |||||||||
| CONDENSED BALANCE SHEET FOR SKYE COMPUTER COMPANY | |||||||||
| MV Capital Structure | |||||||||
| Dollars | % | ||||||||
| 2020 | Additional information for part a: | ||||||||
| Current assets | $15,000 | Common Stock Price - P0 | $81.00 | ||||||
| Net fixed assets | 40,000 | Common shares outstanding (000) | 1,000 | ||||||
| Total assets | $55,000 | Preferred Stock Price - Pp | $80.00 | ||||||
| Preferred shares outstanding (000) | 50 | ||||||||
| Accounts payable and accruals | $5,000 | ||||||||
| Long-term debt | 15,000 | ||||||||
| Preferred stock | 5,000 | ||||||||
| Common stock | $20,000 | ||||||||
| Retained earnings | 10,000 | ||||||||
| Total common equity | $30,000 | ||||||||
| Total liabilities & equity | $55,000 | $100,000 | 100.0% | ||||||
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