Question: please answer the question fully and clearly If the market risk premium is 5.8% and company has the following: Common Stock: 6850000 shares outstanding, selling
If the market risk premium is 5.8% and company has the following: Common Stock: 6850000 shares outstanding, selling at 628 per share, beta 1.6 Preferred Stocks 350,000 shares outstanding, 4.8% yield, selling at 683.5 per chare Debt 1380005.5% semi annual bonds outstanding, par value $1000 each with 12 years to maturity, selling at 117% of par Tax Rate: 30% a) Galculate the company's market value b) Calculate the percentage of the market value capital stucture that is debt c) Galculate the percentage of the market value capital structure that is common shares d) Galculate the percentage of the market value capital stucture that is preferred shares e) Discuss (3 to 10 sentences) how the matter of risk relates to capital structure Answer Place onlyyour final answer in the box
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
