by | Oct 28, 2021 | Homework Help

1) FMA Inc. has a market capitalization of $4.8 million and book equity of $1.2 million. The common stock is expected to pay a dividend of $3 per share next year, and the dividend growth rate is 3% per year. The firm has 75,000 shares of stock outstanding. They have market value of debt of $2 million. The value of debt on the balance sheet is $1.8 million. The semiannual bonds have a coupon rate of 8% and a yield to maturity of 6%. The tax rate is 40%. There is no preferred stock. What is the capital structure weight of equity?Show all work please

Plagiarism-free and delivered on time!

We are passionate about delivering quality essays.

Our writers know how to write on any topic and subject area while meeting all of your specific requirements.

Unlike most other services, we will do a free revision if you need us to make corrections even after delivery.