Homework Answers
Current value of equity=($54*5.8)=$313.2 million
Total value=(97+313.2+20)=430.2 million
Hence weight of:
Debt=(97/430.2)=22.55%(Approx).
Equity=(313.2/430.2)=72.80%(Approx).
Preferred stock=(20/430.2)=4.65%(Approx).
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