Question: Need help with the following question. Please show work. 13-1 Capital Structure Weights A. Suppose that Taco John's equity is currently selling for $55 per

Need help with the following question. Please show work.

Need help with the following question. Please show work. 13-1 Capital Structure

13-1 Capital Structure Weights A. Suppose that Taco John's equity is currently selling for $55 per share, with 4 million shares outstanding. If the firm also has 17 thousand bonds outstanding, which are selling at 94 percent of par, what are the firm's current capital structure weights? Use the capital structure weights equation: Market Value of Equity Market Value of Equity + Market Value of Debt Market Value of Debt Market Value of Equity + Market Value of Debt E+D E+D B. Suppose that Taco John's is considering an active change to their capital structure so.as to have a D/E of 0.4, which type of security (stocks or bonds) would they need to sell to accomplish this, and how much would they have to sell

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