The common stock of Moe's Restaurant is currently selling for
$80 per share, has a book value of $60 per share, and there are 1 million
shares of common stock outstanding. In addition, the firm also has 100,000 bonds
outstanding with a par value of $1,000 that are selling at 110% of par. What are
the capital structure weights that Moe's should use to analyze
its capital structure?
$80 per share, has a book value of $60 per share, and there are 1 million
shares of common stock outstanding. In addition, the firm also has 100,000 bonds
outstanding with a par value of $1,000 that are selling at 110% of par. What are
the capital structure weights that Moe's should use to analyze
its capital structure?
Comments
Post a Comment