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Suppose the Schoof Company has this book value balance sheet: The notes payable are to banks, and the interest rate on this debt is 9
Suppose the Schoof Company has this book value balance sheet:
The notes payable are to banks, and the interest rate on this debt is 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 longterm debt consists of bonds, each with a par value of $ an
annual coupon interest rate of and a year maturity. The going rate of interest on new longterm debt, is and this is the present yield to
maturity on the bonds. The common stock sells at a price of $ per share. Calculate the firm's market value capital structure. Do not round intermediate
calculations. Round the monetary values to the nearest dollar and percentage values to two decimal places.
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