Claus Enterprises has 174,000 shares of common stock outstanding at a current price of $46 a share.

Question:

Claus Enterprises has 174,000 shares of outstanding at a current price of $46 a share. The firm also has two bond issues outstanding. The first bond issue has a total of $250,000, pays 7.7 percent interest annually, and currently sells for 102.5 percent of The second bond issue consists of 5,000 bonds that are selling for $993 each. These bonds pay 6.5 percent interest annually and mature in 8 years. The tax rate is 34 percent. What is the weight of the firm's ?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Capital Structure
Capital structure refers to a company’s outstanding debt and equity. The capital structure is the particular combination of debt and equity used by a finance its overall operations and growth. Capital structure maximizes the market value of a... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...