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Using the attached balance sheet information calculate the capital structure of the firm based on market values of the bonds, preferred stock & common stock

Using the attached balance sheet information calculate the capital structure of the firm based on market values of the bonds, preferred stock & common stock in dollars & as a percentage of the total.

Assets

$ (000,000's)

Liabilities & Equity

$ (000,000's)

Cash & Marketable Securities

1

Bonds

10

Accounts Receivable

3

Preferred Stock

2

Inventories

7

Common Stock

10

Plant & Equipment

21

Retained Earnings

10

Total

32

Total

32

Bonds Coupon Rate 8% paid annually

Maturity 10 years, yield to maturity 9%

Preferred Stock par value $20 per share, market value $15 per share

Common stock 1 million shares outstanding with a market value of $20 per share

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