Reference no: EM132645716

When creating your initial post, assume you are the CFO of Hankins Corporation. Given the key financial data below, perform a detailed and thorough financial analysis (show and explain all calculations) that includes the following:

Question 1: Describe the firm's market value capital structure:

Question 2: What is the market value for each type of financing used by the firm: equity, preferred stock, and debt?

Question 3: What is the total market value for Hankins Corporation?

Key financial data for Hankins Corporation:

• Common stock outstanding = 5.4 million shares; market value = $64/share; beta = 1.13
• 5.6% Preferred stock outstanding = 290,000 shares issued with par value = $100 each. Current market value of preferred stock = $103/share. 
• 6.7% semi-annual bonds outstanding = 125,000 bonds issued with par value = $1,000 each; market value is 109% of par; all bonds mature in 20 years. 
• Market risk premium = 6.8% 
• T-bills current yield = 4.3% 
• Corporate tax rate = 34%