Suppose that Lil John Industries' equity is currently selling for $37 per share and that there are 2 million shares outstanding. If the firm also has 50 thousand bonds outstanding, which are selling at 103 percent of par, what are the firm's current capital structure weights?© BrainMass Inc. brainmass.com June 4, 2020, 12:50 am ad1c9bdddf
Capital structure weights are the proportion of capital components - debt and equity in the capital structure.
We calculate the market ...
The solution explains how to determine the capital structure weights