T-bills are yielding 55 percent and the firms tax rate is


Hankins Corporation has 9 million shares of common stock outstanding, 650,000 shares of 7 percent preferred stock outstanding, and 190,000 of 8.2 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $65.50 per share and has a beta of 1.35, the preferred stock currently sells for $106.50 per share, and the bonds have 15 years to maturity and sell for 88.5 percent of par. The market risk premium is 6.8 percent, T-bills are yielding 5.5 percent, and the firm’s tax rate is 34 percent. a. What is the firm's market value capital structure? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.)   Market value weight of debt Market value weight of preferred stock Market value weight of equity

Request for Solution File

Ask an Expert for Answer!!
Financial Management: T-bills are yielding 55 percent and the firms tax rate is
Reference No:- TGS02346610

Expected delivery within 24 Hours