Question
Problem 13-4 Willerton Industries Inc. has the following balances in its capital accounts as of 12/31/X3: Long-term debt $55000000 Preferred stock 25000000 Common stock 50000000
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Problem 13-4
Willerton Industries Inc. has the following balances in its capital accounts as of 12/31/X3:
Long-term debt $55000000 Preferred stock 25000000 Common stock 50000000 Paid in excess 15000000 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 $33. 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 | $55000000 |
| Preferred stock | 25000000 |
| Common stock | 50000000 |
| Paid in excess | 15000000 |
| 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 $33. 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% |
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Understanding Terrorist Finance
Authors: T. Wittig
2011th Edition
0230291848, 978-0230291843
