What is the capital structure weight of firm common stock

Reference no: EM13261290

NR Industries has 150,000 shares of common stock outstanding. The stock is currently selling for $33.50 a share. The firm also has 2 bond issues outstanding. The first bond issue has a total face value of $2,500,000, pays 9.5 percent interest annually, and currently sells for $1,030. The second bond issue consists of 7,500 bonds that are selling for $960 each. These bonds pay 8 percent interest annually and mature in 11 years. The tax rate is 34 percent. What is the capital structure weight of the firm's common stock? (Hint: Assume each bond has face value of $1,000.)

a. 33.66 percent
b. 33.71 percent
c. 33.80 percent
d. 33.95 percent
e. 34.07 percent

Reference no: EM13261290

Questions Cloud

Determine the amplitude of the current through this circuit : A 1.02mF capacitor is connected in series with an AC source with amplitude 50V and angular frequecy 40 rad/s. determine the amplitude of the current through this circuit

What percentage of the firm capital funding should be debt : What percentage of the firm's capital funding should be debt financing if its tax rate is 30 percent? (Hint: Find the weight of debt in the formula for WACC. Remember that sum of weights of debt and equity must equal 1.)

Explain what is the effect on the cell emf : A voltaic cell utilizes the following reaction: Al(s) + 3Ag+(aq) Al3+(aq) + 3Ag(s) What is the effect on the cell emf of each of the following changes

What will the focal lens of the lens be in this environment : If this lens is then immersed in silicone oil with a refractive index of 1.52, what will the focal lens of the lens be in this environment

What is the capital structure weight of firm common stock : What is the capital structure weight of the firm's common stock? (Hint: Assume each bond has face value of $1,000.)

Determine the wavelength of the light in the liquid : Light of wavelength 550nm in air is found to travel at 1.96*10^8 m/s in a certain liquid. Determine the wavelength of the light in the liquid

What is the more common practice today : With very little in the way of exceptions, the common law required no writing or signature to enter into a contract. The overwhelming number of contracts were verbal or oral contracts. What is the more common practice today?

Find what is the output power of the final amplifier stage : Three amplifiers with power gains of 15, 22, and 7 are cascaded. The input power is 120 µW. What is the output power of the final amplifier stage

Explain what was the ka for the unknown acid : A 0.146 g sample of an unknown monoprotic acid (molar mass = 83.0 g/mol) was dissolved in 50.0 mL of water and titrated with a 0.101 M NaOH solution. After the addition of 14.0 mL of base, the pH was 5.12. What was the Ka for the unknown acid

User Account

All Pages