Problem 13-4

Willerton Industries Inc. has the following balances in its capital accounts as of 12/31/X3:

Long-term debt	$65000000
Preferred stock	20000000
Common stock	40000000
Paid in excess	10000000
Retained earnings	42500000

Company's long-term debt is comprised of 20-year $1000 face value bonds issued 7 years ago at an 8% coupon rate. The bonds are now selling to yield 6%. Willerton's preferred is from a single issue of $100 par value, 9% preferred stock that is now selling to yield 8%. Willerton has 4 million shares of common stock outstanding at a current market price of $31. Calculate Willerton's market value based capital structure. Assume that the coupon payments are semi-annual. Round the market values to the nearest dollar and the weights to two decimal places of percentage. Do not round your intermediate calculations.

	Market Value	Weight
Debt	$ fill in the blank 1	fill in the blank 2%
Preferred stock	fill in the blank 3	fill in the blank 4%
Equity	fill in the blank 5	fill in the blank 6%
	$ fill in the blank 7	fill in the blank 8%

Problem 13-4

Willerton Industries Inc. has the following balances in its capital accounts as of 12/31/X3:

Long-term debt $75000000 Preferred stock 20000000 Common stock 40000000 Paid in excess 15000000 Retained earnings 32500000 Company's long-term debt is comprised of 20-year $1000 face value bonds issued 7 years ago at an 8% coupon rate. The bonds are now selling to yield 6%. Willerton's preferred is from a single issue of $100 par value, 9% preferred stock that is now selling to yield 8%. Willerton has 4 million shares of common stock outstanding at a current market price of $31. Calculate Willerton's market value based capital structure. Assume that the coupon payments are semi-annual. Round the market values to the nearest dollar and the weights to two decimal places of percentage. Do not round your intermediate calculations.