Question
Willerton Industries Inc. has the following balances in its capital accounts as of 12/31/X3: Long-term debt $55000000 Preferred stock 25000000 Common stock 30000000 Paid in
Willerton Industries Inc. has the following balances in its capital accounts as of 12/31/X3: Long-term debt $55000000 Preferred stock 25000000 Common stock 30000000 Paid in excess 10000000 Retained earnings 32500000 Company's long-term debt is comprised of 20-year $1000 face value bonds issued 7 years ago at an 8% coupon rate. The bonds are now selling to yield 6%. Willerton's preferred is from a single issue of $100 par value, 9% preferred stock that is now selling to yield 8%. Willerton has 4 million shares of common stock outstanding at a current market price of $29. Calculate Willerton's market value based capital structure. Assume that the coupon payments are semi-annual. Round the market values to the nearest dollar and the weights to two decimal places of percentage. Do not round your intermediate calculations.
Market Value | Weight | |
Debt | $ | $ |
Preferred stock | $ | $ |
Equity | $ | $ |
Total | $ | $ |
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