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Market Value Capital Structure Suppose the Schoof Company has this book value balance sheet: Current assets Fixed assets $30,000,000 Current liabilities Notes payable 70,000,000
Market Value Capital Structure Suppose the Schoof Company has this book value balance sheet: Current assets Fixed assets $30,000,000 Current liabilities Notes payable 70,000,000 Long-term debt Common stock (1 million shares) Retained earnings Total assets $100,000,000 Total liabilities and equity The notes payable are to banks, and the interest rate on this debt is 11%, the same as th loans. These bank loans are not used for seasonal financing but instead are part of the cor capital structure. The long-term debt consists of 30,000 bonds, each with a par value of $ interest rate of 10%, and a 15-year maturity. The going rate of interest on new long-term this is the present yield to maturity on the bonds. The common stock sells at a price of $6 the firm's market value capital structure. Do not round intermediate calculations. Round th the nearest dollar and percentage values to two decimal places. Short-term debt $ Long-term debt Common equity Total capital +A $ % %
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