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Suppose Scotty's common stock is currently selling for $95 per share, and there are 4,000,000 shares outstanding. If Scotty also has 80,000 outstanding, which are
Suppose Scotty's common stock is currently selling for $95 per share, and there are 4,000,000 shares outstanding. If Scotty also has 80,000 outstanding, which are selling at 91.5% of par (assume par value = $1,000), what are Scotty's current weights of debt and equity in its capital structure? Weight of Equity = 77.80 percent; Weight of Debt = 12.20 percent Weight of Equity = 83.85 percent; Weight of Debt = 16.15 percent Weight of Equity = 81.29 percent; Weight of Debt = 18.71 percent Weight of Equity = 65.19 percent; Weight of Debt = 34.81 percent OOOO
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