a. Here is the condensed 2020 balance sheet for Skye Computer Company (in thousands of...
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a. Here is the condensed 2020 balance sheet for Skye Computer Company (in thousands of dollars). Compute the market value weights using the information provided below. Only include appropriatr sources. CONDENSED BALANCE SHEET FOR SKYE COMPUTER COMPANY MV Capital Structure Dollars % Current assets Net fixed assets 2020 $ 40,000 $ 60,000 $ 100,000 Additional information for part a: Common Stock Price - Po Common shares outstanding (000) Preferred Stock Price - Pp Preferred shares outstanding (000) $162.00 1,000 $90.00 200 Total assets Accounts payable and accruals Long-term debt Preferred stock Common stock Retained earnings Total common equity Total liabilities & equity $ 10,000 $ 20,000 $ 20,000 $ 20,000 $ 30.000 $ 50,000 $ 100,000 $0 0.0% b. Compute the after-tax cost of debt using the information provided. The firm's tax rate is 30%. Currently, there is one outstanding 8% coupon semi-annual bond that sells for $1100 and it has 25 years to matuurity. It will pay par value of $1,000 at maturity. Bond maturity (years) Payments per year Annual coupon rate Par value = Bond price Tax rate = 25 2 8% $1,000.00 $1,100.00 30% ra(1 T)
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