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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
9.     The market price of Albertson Ltd.’s common stock is $5.50 and 100,000 shares are outstanding. The firm’s books show common equity accounts totaling
$400,000. There are 5,000 preferred shares outstanding that originally sold for their par value of $50, pay an annual dividend of $3, and are currently selling to yield an 8% return. Also, 200 bonds are outstanding that were issued 5 years ago at their $1,000 face values for 30-year terms, pay a coupon rate of 7%, and are currently selling to yield 10%. Develop Albertson’s capital structure based on both book and market values.
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