What is the capital structure weight of equity

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1) FMA Inc. has a market capitalization of $4.8 million and book equity of $1.2 million. The common stock is expected to pay a dividend of $3 per share next year, and the dividend growth rate is 3% per year. The firm has 75,000 shares of stock outstanding. They have market value of debt of $2 million. The value of debt on the balance sheet is $1.8 million. The semiannual bonds have a coupon rate of 8% and a yield to maturity of 6%. The tax rate is 40%. There is no preferred stock. What is the capital structure weight of equity?

Reference no: EM131767485

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