Hello,

I need an excel file that solves the following question. Thank you!

Problem 9-16: Market Value Capital Structure

Suppose the Schoof Company has this book value balance sheet:

Current Assets	30,000,000		Current liabilities	20,000,000
Fixed assets	70,000,000		Notes payable	10,000,000
			Long-term debt	30,000,000
			Common stock (1 million shares)	1,000,000
			Retained earnings	39,000,000
Total assets	100,000,000		Total liabilities and equity	100,000,000

The notes payable are to banks, and the interest rate in this debt is 10%, 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 6%, and a 20-year maturity. The going rate of interest on new long-term debt, r_d, is 10%, and this is the present yield to maturity on the bonds. The common stock sells at a price of $60 per share. Calculate the firm's market value capital structure.