Calculate Willerton market value based capital structure

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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 40000000

Paid in excess 5000000

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 $33. Calculate Willerton's market value based capital structure. Assume that the coupon payments are semi-annual.

Reference no: EM133078601

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