The Following Information Pertains to the Capital Structure of a Firm

Essay

The following information pertains to the capital structure of a firm:
Debt : Fifteen hundred bonds with face values of $1000 and a 10-year term were issued three years ago with a coupon rate of 10% paid semiannually. Today the bonds are selling to yield 8%.
Preferred stock : Ten thousand shares of preferred stock are outstanding with a $9 annual dividend and a $100 face value. Today the shares are selling to yield a 10% return.
Common equity : 150 thousand shares of common stock are outstanding at a current market price of $30 per share.
Develop the firm's market value based capital structure.