Firm market value capital structure


Organic Produce Corporation has 7.5M shares of common stock outstanding ,500,000 shares of 7% preferred stock outstanding , and 175,000 of 8.2 % semiannual bonds outstanding , par value $1,000 each. The common stock currently sells for $64 per share and has a beta of 1.2 , the preferred stock currently sells for $108 per share and bonds have 15 year to maturity and sell for 96 % of par. Market risk premium is 6,8% T-bills yielding 5.5 percent .

A.) What is the firm's market value capital structure?

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Finance Basics: Firm market value capital structure
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