What is the capital structure weight of the firms debt

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Reference no: EM131180037

IbreOffice has 85,000 shares of common stock outstanding at a price of $62 a share. They also have 10,000 shares of preferred stock outstanding at a price of S85 a share. The firm has 10,000 8 percent, 20-year bonds outstanding, with a face value of $1,000, currently trading at 101 percent of face value. The bonds pay interest semiannually. What is the capital structure weight of the firm's debt if the tax rate is 35 percent?

a. 32.00 percent

b, 36.16 percent

c. 40.48 percent

d. 51.75 percent

e. 62.27 percent

Reference no: EM131180037

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