What is the capital structure weight of the firms debt

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J&J Movers has 40,000 shares of common stock outstanding at a price of $34 a share. It also has 4,000 shares of preferred stock outstanding at a price of $58 a share. The firm has 9 percent, 10-year bonds outstanding with a total face value of $500,000. The bonds are currently quoted at 960 and pay interest semiannually.

What is the capital structure weight of the firm's debt if the tax rate is 34 percent?

Reference no: EM131147524

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