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Organic Produce Corporation has 8.1 million shares of common stock outstanding, 560,000 shares of 7.1 percent preferred stock outstanding, and 181,000 of 8.3 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $64.60 per share and has a beta of 1.26, the preferred stock currently sells for $107.40 per share, and the bonds have 16 years to maturity and sell for 93 percent of par. The market risk premium is 6.85 percent, T-bills are yielding 5.55 percent, and the firm’s tax rate is 30 percent.

Required:

(a) What is the firm's market value capital structure? (Do not round intermediate calculations. 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

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92167246

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