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If a company has the following: Common Stock: 7,500,000 shares outstanding, selling at $35 per share, beta 1.3 Preferred Stock: 200,000 shares outstanding, 5% yield,

If a company has the following:

Common Stock: 7,500,000 shares outstanding, selling at $35 per share, beta 1.3

Preferred Stock: 200,000 shares outstanding, 5% yield, selling at $100 per share

Debt: 125,000 6% semiannual bonds outstanding, par value $1000 each with 15 years to maturity, selling at 112% of par

Tax Rate: 30%

  1. Calculate the company`s market value
  2. Calculate the percentage of the market value capital structure that is debt
  3. Calculate the percentage of the market value capital structure that is common shares
  4. Calculate the percentage of the market value capital structure that is preferred shares
  5. Discuss (3 to 10 sentences) how the matter of risk relates to capital structure

please provide all the work and explanations

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