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ASSETS: LIABILITIES: EQUITY: Current Assets. $10,000,000 Long-term Debt $50,000,000 $85,000,000 Fixed Assets (net) Intangibles $25,000,000 Common Stock $100,000 Add'l Paid in Capital $44,900,000 Retained Earnings

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ASSETS: LIABILITIES: EQUITY: Current Assets. $10,000,000 Long-term Debt $50,000,000 $85,000,000 Fixed Assets (net) Intangibles $25,000,000 Common Stock $100,000 Add'l Paid in Capital $44,900,000 Retained Earnings $25,000,000 Total Assets: $120,000,000 Total Liab. & Equity $120,000,000 ADDITIONAL INFORMATION: a. The Company's long-term debt consists of 50,000 bonds, $1,000 par value, 20 year, 10%, semi- annual payments, and is currently selling @ 86.8. b. The current stock price of the Company's common stock is $795.00 per share. Par Value = $1.00/share. c. The risk-free rate is 4% and the risk premium of the Market is 13%. The Company's beta is 1.2. New debt can be issued at the current yield to maturity. 15 years remain of the Company's d. bonds. e. The Company's tax rate is 40%. REQUIRED: 1. What is the Company's current capital structure? 2. What is the Company's WACC

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