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The new Designer Shoes was expected to sell for $ 104 per unit and had projected sales of 4700 units in the first year, with

The new Designer Shoes was expected to sell for $ 104 per unit and had projected sales of 4700 units in the first year, with a projected (Most-Likely scenario) 15.0 % growth rate per year for subsequent years. A total investment of $ 956,000 for new equipment was required. The equipment had fixed maintenance contracts of $ 280,612 per year with a salvage value of $ 123,174 and variable costs were 8 % of revenues. Balky also needed to consider both the Best-Case and Worst-Case scenarios in the analysis with growth rates of 25.00 % and 1.50 % respectively. The new equipment would be depreciated to zero using straight line depreciation. The new project required an increase in working capital of $ 128,520 and $ 21,848 of this increase would be offset with accounts payable.

PSUWC currently has 1178000 shares of stock outstanding at a current price of $ 76.00. Even though the company has outstanding stock, it is not publicly traded and therefore there is no publicly available financial information. However, after analysis management believes that its equity beta is 1.04.

The company also has 125000 bonds outstanding, with a current price of $ 1,032.00. The bonds pay interest semi-annually at a coupon rate of 5.10 %. The bonds have a par value of $1,000 and will mature in 14 years. The average corporate tax rate was 39 %.

Fill in the blanks. Answer all questions or I will downvote.

Market Value of Equity $ 89,528,000.00
Market Value of Debt
Total Market Value $ 89,528,000.00
Weight of Equity
Weight of Debt

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