Market Value Capital Structure

Suppose the Schoof Company has thisbook valuebalance sheet:

Current assets

$30,000,000

Current liabilities

$10,000,000

Notes payable

10,000,000

Fixed assets

50,000,000

Long-term debt

20,000,000

Common stock

(1 million shares)

1,000,000

Retained earnings

39,000,000

Total assets

$80,000,000

Total claims

$80,000,000

The current liabilities consist entirely of notes payable 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 9%, and a 15-year maturity. The going rate of interest on new long-term debt, r_d, is 10%, and this is the present yield to maturity on the bonds. The common stock sells at a price of $52 per share. Calculate the firm'smarket valuecapital structure. Round your answers to two decimal places.

Short-term debt

$

%

Long-term debt

$

%

Common equity

$

%

Total capital

$

%