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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 15000000 Common stock 30000000
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 15000000 Common stock 30000000 Paid in excess 15000000 Retained earnings 37500000 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 $ % Preferred stock % Equity % $ %
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