Murrays is planning a $5 million expansion to its Pittsburgh store. This expansion will be financed,...

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Murrays is planning a $5 million expansion to its Pittsburgh store. This expansion will be financed, in part, with debt costing 8.00% before taxes. Murrays' marginal tax rate is 35%. Murrays' common stock pays a dividend of $1.20 per share. The current market price is $13.15 per share. Murrays' common stock dividends are expected to increase at an annual rate of 4.00% in the foreseeable future. Preferred stock pays a dividend of $1.00 per share and its current price is $12.00. The project is expected to yield an internal rate of return of 8.57%. Murrays' target capital structure is as follows: Assets Current Assets Fixed Assets Total Assets = Liabilities $40 Current Liabilities $25 140 +Owner's Equity Preferred Stock 15 Common Stock+Retained Earn. 55 $180 Total Liability+ Equity $180 Calculate the percent of Debt in Murrays' Capital Structure. 9.68% 61.11% 16.13% 35.48% 54.84% Clear my selection. Murrays is planning a $5 million expansion to its Pittsburgh store. This expansion will be financed, in part, with debt costing 8.00% before taxes. Murrays' marginal tax rate is 35%. Murrays' common stock pays a dividend of $1.20 per share. The current market price is $13.15 per share. Murrays' common stock dividends are expected to increase at an annual rate of 4.00% in the foreseeable future. Preferred stock pays a dividend of $1.00 per share and its current price is $12.00. The project is expected to yield an internal rate of return of 8.57%. Murrays' target capital structure is as follows: Assets Current Assets Fixed Assets Total Assets = Liabilities $40 Current Liabilities $25 140 +Owner's Equity Preferred Stock 15 Common Stock+Retained Earn. 55 $180 Total Liability+ Equity $180 Calculate the percent of Debt in Murrays' Capital Structure. 9.68% 61.11% 16.13% 35.48% 54.84% Clear my selection.