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Suppose the Schoof Company has this book value balance sheet: Current assets $30,000,000 Current liabilities $20,000,000...

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Finance

Suppose the Schoof Company has this book value balance sheet:Current assets $30,000,000 Current liabilities $20,000,000 Fixedassets 70,000,000 Notes payable $10,000,000 Long-term debt30,000,000 Common stock (1 million shares) 1,000,000 Retainedearnings 39,000,000 Total assets $100,000,000 Total liabilities andequity $100,000,000 The notes payable are to banks, and theinterest rate on this debt is 8%, the same as the rate on new bankloans. These bank loans are not used for seasonal financing butinstead are part of the company's permanent capital structure. Thelong-term debt consists of 30,000 bonds, each with a par value of$1,000, an annual coupon interest rate of 9%, and a 15-yearmaturity. The going rate of interest on new long-term debt, rd, is10%, and this is the present yield to maturity on the bonds. Thecommon stock sells at a price of $56 per share. Calculate thefirm's market value capital structure. Do not round intermediatecalculations. Round your answers to two decimal places.

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