Question
The Pretty Pathcom Company has listed on its balance sheet a total of $95,000,000 in Total Debt, $25,000,000 in Preferred Stock, and $40,000,000 in Common
The Pretty Pathcom Company has listed on its balance sheet a total of $95,000,000 in Total Debt, $25,000,000 in Preferred Stock, and $40,000,000 in Common Stock. The firm has 100,000 debt issues outstanding with a current price of $1,200 per issue. There are 500,000 shares of preferred stock outstanding with a current price of $60 per share. The firm has 1,000,000 shares of common stock outstanding with a current price of $100 per share. The firm is authorized to issue 1,500,000 shares of common stock.
A. What is the market value weight on the firms common stock?
B. What is the book value weight on the firms common stock?
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