Calculate willerton market value based capital structure

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Reference no: EM132802618

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

Long-term debt      $75000000

Preferred stock       25000000

Common stock        30000000

Paid in excess          5000000

Retained earnings      32500000

problem 1: 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

Reference no: EM132802618

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