Suppose that a company's equity is currently selling for $26.00per share and that there are 5.60 million shares outstanding. Ifthe firm also has 46 thousand bonds outstanding, which are sellingat 109.00 percent of par, what are the firm's current capitalstructure weights for equity and debt respectively?
Equity = 5,600,000 x $26 = $145,600,000, so .7438
Debt = 46,000 x 1.090 x 1,000 = $50,140,000, so .2562
Total = $195,740,000
74.38%, 25.62%
