Market Value Capital Structure

Suppose the Schoof Company has this book value balance sheet:

Current assets $$30,000,000$ Current liabilities $$20,000,000$

Notes payable $10,000,000$

Fixed assets $70,000,000$ Long$-$term debt $30,000,000$

Common stock $(1$ million shares$)1,000,000$

Retained earnings $39,000,000$

Total assets $$100,000,000$ Total liabilities and equity $$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 $$1,000,$ an annual coupon interest rate of $9\%,$ and a $20-$year maturity. The going rate of interest on new long$-$term debt, rd$,$ is $11\%,$ and this is the present yield to maturity on the bonds. The common stock sells at a price of $$54$ per share. Calculate the firm's market value capital structure. Do not round intermediate calculations. Round the monetary values to the nearest dollar and percentage values to two decimal places.

Short$-$term debt

$

$10000000$

$10\mathrm{.}53$

$\%$

Long$-$term debt

$31,000,000$

$32\mathrm{.}63$

Common equity

$54,000,000$

$56\mathrm{.}84$

Total capital

$

$95,000,000$

$10\mathrm{.}53$

$\%$Check My Work

Market Value Capital Structure

Suppose the Schoof Company has this book value balance sheet:

$\backslash$table$[[$Current assets,$$30,000,000,$Current liabilities,$$20,000,000$

please use excel, showing formulas, if possible