Question
The Wall Company has 131,000 shares of common stock outstanding that are currently selling at $26.51. It has 4,420 bonds outstanding that won't mature for
The Wall Company has 131,000 shares of common stock outstanding that are currently selling at $26.51. It has 4,420 bonds outstanding that won't mature for 20 years. They were issued at a par value of $1,000 paying a coupon rate of 6%. Comparable bonds now yield 9%. Wall's $100 par value preferred stock was issued at 8% and is now yielding 13%; 8,500 shares are outstanding. Assume that the coupon payments are semi-annual. Develop Wall's market value based capital structure. Round the values to the nearest dollar and the weights to two decimal places of percentage. Do not round your intermediate calculations. Round PVF and PVFA values in intermediate calculations to four decimal places.
Component | Value | Capital Structure |
Debt | $ | % |
Preferred stock | % | |
Equity | % | |
Total Capital | $ | % |
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