Question: step by step formula not excel ABC has 8.4 million shares of common stock outstanding, 280,000 shares of 6% $100 par value preferred stock outstanding,

step by step formula not excel ABC has 8.4 million shares

step by step formula not excel

ABC has 8.4 million shares of common stock outstanding, 280,000 shares of 6% $100 par value preferred stock outstanding, and 141,000 7.50% semi-annual bonds outstanding, par value $1,000 each. The common stock currently sells for $32 per share and has a beta of 1.20, the preferred stock currently sells for $94 per share, and the bonds have 20 years to matunty and sell for 113% of par. The market risk premium is 7.2%, T-bills are yielding 5%, and Raymond Mining's tax is 40%. What is the firm's market value capital structure? Market value Debt $ Equity $ Preferred stock $ For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)

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