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Problem 12-15 Finding the WACC [LO 3] Hankins Corporation has 5.1 million shares of common stock outstanding, 294,000 shares of 5.2 percent preferred stock outstanding,
Problem 12-15 Finding the WACC [LO 3] Hankins Corporation has 5.1 million shares of common stock outstanding, 294,000 shares of 5.2 percent preferred stock outstanding, par value of $100, and 135,000 5.5 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $72.30 per share and has a beta of 1.07, the preferred stock currently sells for $103.40 per share, and the bonds have 22 years to maturity and sell for 102.8 percent of par. The market risk premium is 6.3 percent, T-bills are yielding 2.8 percent, and the firm's tax rate is 22 percent. What is the firm's market value capital structure? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.) Market value weight of debt Market value weight of preferred stock Market value weight of equity
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