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Market Value Capital Structure Suppose the Schoof Company has this book value balance sheet: Current assets $ 30,000,000 Current liabilities Notes payable 70,000,000 $

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Market Value Capital Structure Suppose the Schoof Company has this book value balance sheet: Current assets $ 30,000,000 Current liabilities Notes payable 70,000,000 $ 20,000,000 10,000,000 30,000,000 Fixed assets Total assets $100,000,000 Long-term debt Common stock (1 million shares) Retained earnings Total liabilities and equity 1,000,000 39,000,000 $100,000,000 The notes payable are to banks, and the interest rate on this debt is 10%, the same as the rate on new bank loans. These bank loans are not used for seasonal financing but instead are part of the company's permanent capital structure. The long-term debt consists of 30,000 bonds, each with a par value of $1,000, an annual coupon interest rate of 7%, and a 15-year maturity. The going rate of interest on new long-term debt, rd, is 12%, and this is the present yield to maturity on the bonds. The common stock sells at a price of $62 per share. Calculate the firm's market value capital structure. Do not round intermediate calculations. Round the monetary values for final answers to the nearest dollar and final answer percentage values to two decimal places. Short-term debt $ % Long-term debt Common equity Total capital $ %

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