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If the market risk premium is 5.8% and company has the following: Common Stock: 6850000 shares outstanding, selling at $28 per share, beta 1.6 Preferred
If the market risk premium is 5.8% and company has the following: Common Stock: 6850000 shares outstanding, selling at $28 per share, beta 1.6 Preferred Stock: 350,000 shares outstanding, 4.8% yield, selling at $88.5 per share Debt: 1380005.5% semi annual bonds outstanding, par value $1000 each with 12 years to maturity, selling at 117% of par Tax Rate: 30% a) Calculate the company`s market value b) Calculate the percentage of the market value capital structure that is debt c) Calculate the percentage of the market value capital structure that is common shares d) Calculate the percentage of the market value capital structure that is preferred shares e) Discuss (3 to 10 sentences) how the matter of risk relates to capital structure Answer Place only your final answer in the box. Show your work here (mandatory): English (United States) [ ? Focus
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