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Market Value Capital Structure Suppose the Schoof Company has this book value balance sheet: The notes payable are to banks, and the interest rate on
Market Value Capital Structure Suppose the Schoof Company has this book value balance sheet: The notes payable are to banks, and the interest rate on this debt is 11%, the same as the rate on new bank loans. These bank 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 9%, and a 15 -year maturity. The going rate of interest on new long-term debt, rd, is 11%, and this is the present yield on the bonds. The common stock sells at a price of $70 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. Market Value Capital Structure Suppose the Schoof Company has this book value balance sheet: The notes payable are to banks, and the interest rate on this debt is 11%, the same as the rate on new bank loans. These bank 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 9%, and a 15 -year maturity. The going rate of interest on new long-term debt, rd, is 11%, and this is the present yield on the bonds. The common stock sells at a price of $70 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
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