Saint nick enterprises has 20,100 shares of common stock outstanding at a price of $82 per share. the company has two bond issues outstanding. the first issue has 11 years to maturity, a par value of $2000 per bond, and sells for 98 percent of par. the second issue matures in 25 years, has a par value of $1000 per bond, and sells for 94 percent of par. the total face value of the first issue is $380,000, while the total face value of the second issue is $480,000. what is the capital structure weight of debt?

weight of dbet in the capital structure 33.32%

Explanation:

We must calculate the market value of the firm.

market value of equity:

20,100 shares x $82 per share = $1,648,200 value of equity

market value of the debt:

380,000 x 98%  =   372,400

480,000 x 94%  =   451,200  

   total debt:           823,600

Value of the firm:

1,648,200 + 823,600 = 2,471,800

weight of debt:

debt / value =  823,600 / 2,471,800 = 0.333198 = 33.32%

shopping mall is a group of retail stores under one roof. the cognitive structure of an urban shopping center. attributes of shopping mall image, customer satisfaction and mall patronage for selected shopping malls in southern gauteng

answerindustrial revolution;