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The oriole products company currently has dealt with a market value of 275 million outstanding. The deck consist of 9% coupon bond semi annual coupon
The oriole products company currently has dealt with a market value of 275 million outstanding. The deck consist of 9% coupon bond semi annual coupon payments that have a maturity of 15 years and are currently priced at $1423 and92 per bond. The firm also has an issue of 2 million preferred shares outstanding with a market price of $13 per share. The preferred shares pay an annual dividend of $1.20. Oriole also has 14 million shares of common stock outstanding with the price of $20 per share. The firm is expected to pay $2.20 common dividend one year from today, and that dividend is expected to increase by 5% per year for ever. If oriole is subject to a 28% marginal tax rate. Calculate the weights for dad, common equity, and preferred equity.
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