Calculate the firm market value capital structure

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A firm has Notes Payable that have a market value of $7,945 and are used as a source of permanent financing. There are twenty-five bonds $1000 par value bonds (25 bonds) that have 15-years to maturity. The coupon rate of is 5%, but current yield-to-maturity is 6.5%. (Round bond price to nearest dollar.) The company also has 1500 outstanding shares of common stock at a market price of $40 per share. Calculate the firm's market value capital structure percentage for common stock.

Reference no: EM132154660

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