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Suppose the School Company has this book value balance sheet: Current assets $30,000,000 Current liabilities Notes payable Long-term debt Common stock $10,000,000 10,000,000 20,000,000 Fixed
Suppose the School Company has this book value balance sheet: Current assets $30,000,000 Current liabilities Notes payable Long-term debt Common stock $10,000,000 10,000,000 20,000,000 Fixed assets 50,000,000 (1 million shares) Retained emings 1,000,000 39,000,000 $80,000,000 Total assets $80,000,000 Total daims The current abilities consist entirely of notes payable to banks, and the Interest rate on this debitis 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 10,000 bonds, each with a par value of $1,000, an annual coupon interest rate of 9%, and a 25 year maturity. The going rate of interest on new long-term debt, als 12%, and this is the present yield to maturity on the bonds. The common stock sells at a price of $58 per share. Calculate the firm's market value capital structure. Round your answers to two decimal places Short-term deb Long-term debt Common equity Total capital
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