Question: 16. Problem 11-16 (Market Value Capital Structure) Market Value Capital Structure Suppose the Schoof Company has this book value balance sheet: The notes payable are
16. Problem 11-16 (Market Value Capital Structure) Market Value Capital Structure Suppose the Schoof Company has this book value balance sheet: The notes payable are to banks, and the interest rate on this debt is 8%, the same as the rate on new bank loans. These bank loans are not used for seasonal financing but instead are part of the company's permanent capital structure. The long-term debt consists of 30,000 bonds, each with a par value of $1,000, an annual coupon interest rate of 9%, and a 20-year moturity. The going rate of interest on new long-term debt, Fe is 10%, and this is the present yield to maturity on the bonds. The common stock sells at a price of $62 per share. Calculate the firm's market valive capital structure. Do not round intermediate calculations. Round the monetary values for final answers to the nearest dollar and final answer percentage values to two decimal places
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