Suppose the Schoof Company has this book value balance sheet:

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

Total assets $100,000,000 Total liabilities and equity $100,000,000

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

20-year maturity. The going rate of interest on new long-term debt, rd, is 10%, and this is

the present yield to maturity on the bonds. The common stock sells at a price of $60 per

share. Calculate the firm's market value capital structure.