Logo
Home Study Material Contact Search
AI Chat FREE
  1. mathematics
  2. statistics
  3. suppose that a company's equity is currently selli

Suppose that a company's equity is currently selling for $26.00 per share and that there are...

90.2K

Verified Solution

Question

Statistics

Suppose that a company's equity is currently selling for $26.00per share and that there are 5.60 million shares outstanding. Ifthe firm also has 46 thousand bonds outstanding, which are sellingat 109.00 percent of par, what are the firm's current capitalstructure weights for equity and debt respectively?

Equity = 5,600,000 x $26 = $145,600,000, so .7438

Debt = 46,000 x 1.090 x 1,000 = $50,140,000, so .2562

Total = $195,740,000

74.38%, 25.62%

Answer & Explanation Solved by verified expert
3.9 Ratings (660 Votes)
SOLUTION From given data Suppose that a companys equity is currently selling for 2600 per share and that there are 560 million shares outstanding If the firm also has 46 thousand bonds outstanding    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Physics
1.2K views

KOTA A disc of mass m is rolling without slipping on a rough surface The...

Physics
1.2K views

A boy is holding one end of an inextensible cord supporting a block of mass...

Calculus
1.2K views

t 2 t 3 V V Need Help Submit Answer 1 x 103 S Read...

Algebra
1.2K views

implify the following expression All variables are nonzero 2wz 7w 2wz 2 2 2 2...

Accounting
1.2K views

matu mine aidedryasuy? matu mine aidedryasuy

Accounting
1.2K views

Prepare the general journals required in the records of Timely pry ltd to recognise the...

Accounting
1.2K views

Sheridan Company reported the following amounts for May: \table[[Raw materials purchased,$261000

Accounting
1.2K views

Sultan Company uses an activity-based costing system. At the beginning of the year, the company...

Accounting
1.2K views

Discuss several factors affecting (negatively or positively) the achievement of systems development objectives.

Accounting
1.2K views

For each of the following independent circumstances, calculate the FUTA tax owed by the employer:...

Accounting
1.2K views

Doug and Sue Click file a joint tax return and decide to itemize their deductions....

Accounting
1.2K views

In 2001, Fund Company purchased three pieces of equipment. The equipment is used for different...