Willerton Industries Inc. has the following balances in its capital accounts as of 12/31/X3: Long-term debt ............

Question:

Willerton Industries Inc. has the following balances in its capital accounts as of 12/31/X3:
Long-term debt ............ $65,000,000
Preferred stock ............. 15,000,000
Common stock .............. 40,000,000
Paid in excess ............... 15,000,000
Retained earnings .............37,500,000
Calculate Willerton’s based on book values.

Capital Structure
Capital structure refers to a company’s outstanding debt and equity. The capital structure is the particular combination of debt and equity used by a finance its overall operations and growth. Capital structure maximizes the market value of a...