If a balance sheet includes long-term debt of $450,000, common stock of $650,000 and preferred stock...
If a balance sheet includes long-term debt of $450,000, common stock of $650,000 and preferred stock of $150,000, what are the implied book value weights?
Homework Answers
| Book Value of : | |||||||
| Long term debt | $ 4,50,000.00 | ||||||
| Common stock | $ 6,50,000.00 | ||||||
| Preferred stock | $ 1,50,000.00 | ||||||
| Total | $ 12,50,000.00 | ||||||
| So, implied book value weights of: | |||||||
| Long term debt | $ 4,50,000.00 | / | $ 12,50,000.00 | = | 36% | ||
| Common stock | $ 6,50,000.00 | / | $ 12,50,000.00 | = | 52% | ||
| Preferred stock | $ 1,50,000.00 | / | $ 12,50,000.00 | = | 12% | ||
| Total | 100% | ||||||
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