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The McFarland Company has the following book value balance sheet: Current Assets $30,000,000 Current Liabilities Long-Term Debt Common Stock (1 million shares) Retained Earnings Total

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The McFarland Company has the following book value balance sheet: Current Assets $30,000,000 Current Liabilities Long-Term Debt Common Stock (1 million shares) Retained Earnings Total Liabilities and Equity $20.000.000 $40,000,000 S 1,000,000 $39.000.000 $100,000,000 Fixed Assets Total Assets $70,000,000 $100,000,000 The long-term debt consists of 40.000 bonds outstanding with a par value of $1,000 each. The annual coupon rate on the bonds is 6%, paid semiannually, and the bonds have 20- years to maturity. The current rate of interest (yield to maturity) on new, 20-year debt, Id is 10%. What is the market price of one bond? McFarland's common stock currently sells for $60 per share. Calculate McFarland's market value capital structure (percent of debt financing and equity financing in the market value capital structure.) Market Value Capital Structure is: (fill in the blanks) Market Value Long-term debt $ % Market Value Common equity 60.000.000 % Total Market Value debt and equity S 100.00%

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