What is the weight of the firm assets

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You have been assigned to calculate the Weighted-Average-cost- of Capital for your firm, which has two sources of long-term capital. The Company's marginal tax rate is 28%.

First, there are 6,500,000 shares of common stocks, which are currently selling of $153.12. Recently, the firm announced EPS of $12.64. You feel that it is reasonable to assume that earnings will grow at 1.65% into the future.

Second, there is an issue of 260,000 coupon bonds with a face value of $1000. Which pays 6.35% (annual) coupons, and mature in twenty three years. These bonds care currently trading for $1,182.10.

What is the weight of the firm's assets held by the stockholders?

Reference no: EM133114719

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