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Suppose the School Combangtr has this book value balance sheet: Balance Sheet Current assets $50,000,000 Current liabilities $30,000,000 Notes payable $20,000,000 Fixed assets 70,000.0(11 Long-term

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Suppose the School Combangtr has this book value balance sheet: Balance Sheet Current assets $50,000,000 Current liabilities $30,000,000 Notes payable $20,000,000 Fixed assets 70,000.0(11 Long-term debt $30,000,000 Common stock (1 million shares] $1,000,000 Retained earnings 539,000,000 Total assets $120,000,000 Total liabilities and equity $120,000.\" The notes payable are to banks, and the interest rate on this debt is 10%, the same as the rate on newI bank loans. The long-term debt consists of 46.65? bonds, each with a par value oi $1,000, an annual coupon interest rate of 12.0%. and a 23-year maturity. The going rate of interest on new long-term debt, rd, is 12.0%, and this is the present yield to maturity on the bonds. The common stock sells at a price of $137.00 per share. Calculate the firm '3 market value capital structure weight of common stock. C" 04.07% C?- 00.21% '7' 59.05% C" 07.27% '7' 02.04%

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