Using the attached balance sheet information calculate the capital structure of the firm based on market values of the bonds, preferred stock & common stock in dollars & as a percentage of the total.
|
Assets
|
$ (000,000's)
|
|
Liabilities & Equity
|
$ (000,000's)
|
|
|
|
|
|
|
Cash & Marketable Securities
|
1
|
|
Bonds
|
10
|
|
Accounts Receivable
|
3
|
|
Preferred Stock
|
2
|
|
Inventories
|
7
|
|
Common Stock
|
10
|
|
Plant & Equipment
|
21
|
|
Retained Earnings
|
10
|
|
Total
|
32
|
|
Total
|
32
|
Bonds Coupon Rate 8% paid annually
Maturity 10 years, yield to maturity 9%
Preferred Stock par value $20 per share, market value $15 per share
Common stock 1 million shares outstanding with a market value of $20 per share