A firm's capital structure refers to the percentage weightings of long-term funds it employs. Given the following, what is the firm's capital structure based on the total market value of its outstanding securities?
15-year debentures $20,000,000 total par value
Stripped
YTM of 4%
7% Preferred Shares $100 per share par value
Yield of 9%
150,000 shares outstanding
Common Shares 500,000 shares outstanding
Forecast price/earnings ratio of 15 times
Forecast EPS of $2.00 per share
A firm's capital structure refers to the percentage weightings of long-term funds it employs. Given the following, what is the firm's capital structure based on the total market value of its outstanding securities?
15-year debentures
$20,000,000 total par value
Stripped
YTM of 4%
7% Preferred Shares
$100 per share par value
Yield of 9%
150,000 shares outstanding
Common Shares
500,000 shares outstanding
Forecast price/earnings ratio of 15 times
Forecast EPS of $2.00 per share
I'm supposed to find the total value of each one, then find the portion of the total 3
15-year debentures $20,000,000 total par value
Stripped
YTM of 4%
7% Preferred Shares $100 per share par value
Yield of 9%
150,000 shares outstanding
Common Shares 500,000 shares outstanding
Forecast price/earnings ratio of 15 times
Forecast EPS of $2.00 per share
A firm's capital structure refers to the percentage weightings of long-term funds it employs. Given the following, what is the firm's capital structure based on the total market value of its outstanding securities?
15-year debentures
$20,000,000 total par value
Stripped
YTM of 4%
7% Preferred Shares
$100 per share par value
Yield of 9%
150,000 shares outstanding
Common Shares
500,000 shares outstanding
Forecast price/earnings ratio of 15 times
Forecast EPS of $2.00 per share
I'm supposed to find the total value of each one, then find the portion of the total 3