Blue Moon has 10 million shares of common stock outstanding, 2,500,000 shares of

7%,$150

par value preferred stock outstanding and

250,00012%

semiannual bonds outstanding, par value

$1000

each. The stock currently sells for

$45

paid a dividend of

$3

last year - it is forecast to grow at

4%

per year for the foreseeable future. The market is expected to return

11%

, and the risk free rate is roughly

3%

. The stock has a

B=1.25

, the preferred stock sells for

$56

and the bonds mature in 20 years and sell for

$1175

. The floatation costs for common stock, preferred stock, and bonds are

$2,$6

, and

$15

respectively. The tax rate is

40%

.\ Find the market value weights for Debt\ Preferred Stock\ Common stock

Blue Moon has 10 million shares of common stock outstanding, 2,500,000 shares of 7%,$150 par value preferred stock outstanding and 250,00012% semiannual bonds outstanding, par value $1000 each. The stock currently sells for $45 paid a dividend of $3 last year - it is forecast to grow at 4% per year for the foreseeable future. The market is expected to return 11%, and the risk free rate is roughly 3%. The stock has a B=1.25, the preferred stock sells for $56 and the bonds mature in 20 years and sell for $1175. The floatation costs for common stock, preferred stock, and bonds are $2,$6, and $15 respectively. The tax rate is 40%. Find the market value weights for Debt Preferred Stock Common stock