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 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 6%, and a 15-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 $50 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.

\begin{tabular}{lllr} 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 \\ \hline Total assets & & Total liabilities and equity & $100,000,000 \\ \hline \hline \end{tabular} Short-term debt Long-term debt Common equity Total capital \begin{tabular}{l} \\ \\ \\ \\ \hline \end{tabular}