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  3. a companys capital structure consists of: 100,000

A companys capital structure consists of: 100,000 bonds, each with a face value of $100...

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Finance

A companys capital structure consists of: 100,000 bonds, each with a face value of $100 paying a semi-annual coupon of 6% p.a., and with 5 years to maturity. These bonds are currently trading at a market yield of 5% p.a. 1,000,000 ordinary shares currently trading at $20 each. If the company was calculating its weighted average cost of capital (WACC), the proportion of financing provided by bonds (as a percent, to one decimal place) is: ________

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