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Company has 10,000 shares of common stock outstanding at a price of RM10 a share. It also has 3,000 shares of preferred stock outstanding at
Company has 10,000 shares of common stock outstanding at a price of RM10 a share. It also has 3,000 shares of preferred stock outstanding at a price of RM30 a share. There are 30 bonds outstanding that have an 8 percent coupon. The bonds mature in six years, have a face value of RM1,000, and sell at 90 percent of par. Calculate the capital structure weight of the debt.
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