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Question

0? o see tavorites here, select th then , and drag to the Favorites Bar folder.Or import from another browser. Import tavorites Week 6 Homework Assignment Hel Suppose that Lil John Industries' equity is currently selling for $43 per share and that 2.6 million shares are outstanding. Assume the firm also has 36,000 bonds outstanding, and they are selling at 103 percent of par What are the firm's current capital structure weights? (Do not round intermediate calculetions. Round your answers to 2 decimal places.) points Equity Dobt Print Reterences Prey 1 of 7Next O Type here to search

Explanation / Answer

value of equity=43*(2.6*1000000)=111800000

value of debt=36000*1000*103%=37080000

equity weight=111800000/(111800000+37080000)=75.09%

debt weight=37080000/(111800000+37080000)=24.91%

the above is answer..