Question: Needed: Short-Term debt% Long-Term Debt % Common equity % Suppose the Schoof Company has this book value balance sheet: Current assets $30,000,000 Fixed assets Current
Suppose the Schoof Company has this book value balance sheet: Current assets $30,000,000 Fixed assets Current liabilities Notes payable $ 20,000,000 $ 10,000,000 30,000,000 1,000,000 39,000,000 $100,000,000 70,000,000 Long-term debt Common stock (1 million shares) Retained earnings Total liabilities and equity Total assets $100,000,000 The notes payable are to banks, and the interest rate on this debt is 10%, the same as the rate on new are part of the company's permanent capital structure. The long-term debt consists o 30,000 bonds, each with a par value of $1,000, an annual coupon interest rate of 6%, and a bank loans. These bank loans are not used for seasonal financing but instead 20-year maturity. The going rate of interest on new long-term debt, d is 10%, and this is the present yield to maturity on the bonds. The common stock sells at a price of $60 pe share. Calculate the firm's market value capital structure
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