urces Inc. has the following capital structure: Financing Source Proportion of Capital Structure Debentures (8% coupon, $1,000 par value, 13 year maturity) 29 % Preferred stock ($3 dividend, $35 par value) 5 Common equity 66 Total 100 % Jekins expects to raise future capital in the proportions currently indicated on the balance sheet. The current market price for Jenkins debentures is $1,177. If new debentures were sold, the issuance cost would be $43 per bond. The current market price for the preferred stock is $19. Issuance costs on new preferred stock would be $3 per share for a $35 par value issue. Issuance co
Jenkins Resources Inc. has the following capital structure:
| Financing Source | Proportion of Capital Structure | |||
| Debentures (8% coupon, $1,000 par value, 13 year maturity) |
29 | % | ||
| 5 | ||||
| Common equity | 66 | |||
| Total | 100 | % | ||
Jekins expects to raise future capital in the proportions currently indicated on the balance sheet. The current market price for Jenkins debentures is $1,177. If new debentures were sold, the issuance cost would be $43 per bond. The current market price for the preferred stock is $19. Issuance costs on new preferred stock would be $3 per share for a $35 par value issue. Issuance
%
Step by step
Solved in 2 steps with 1 images
