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Your firm currently has 1,543,589 shares of stock outstanding that sell for 18.35. Additionally, you've issued...

Your firm currently has 1,543,589 shares of stock outstanding that sell for 18.35. Additionally, you've issued 23,052 bonds, with a par value of S1,000. They currently sell for 94.1% of par. What is the firm's equity weight? (Enter your answer as a percentage to 1 decimal place. ex: 12.3)

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Answer #1

Total value of:

Equity=1,543,589*18.35=$28324858.2

Bonds=23,052*(1000*94.1%)=$21691932

Total value=(28324858.2+21691932)=$50016790.2

Hence equity weight=(28324858.2/50016790.2)

=56.6%(Approx).

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