The Farkhod Abdurakhimov Company has the following "book value balance sheet: Current Assets $30,000,000 Current...
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The Farkhod Abdurakhimov Company has the following "book value balance sheet: Current Assets $30,000,000 Current Liabilities Long-Term Debt ($1000 par value) Common Stock (1 million shares) Retained Earnings Total Liabilities and Equity $20,000,000 $40,000,000 $ 1,000,000 $39,000,000 $100,000,000 Fixed Assets Total Assets $70,000,000 $100,000,000 The long-term debt consists of 40,000 bonds outstanding with a par value of $1,000 each. The annual coupon rate on the bonds is 6%, paid semiannually, and the bonds have 20-years to maturity. The current market rate of interest (yield to maturity) on 20-year debt, fa is 10%. What is the current market price of one bond? The total market value of the long-term debt is: Abdurakhimo's common stock currently sells for $60 per share. Calculate Abdurakhimo's market value capital structure (percent each of debt financing and equity financing) in the market value capital structure. Market Value Capital Structure is: (fill in the blanks) Market Value Long-term debt $ % Market Value Common equity Total Market Value debt and equity 100.00% %
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