00:01
Hello students, we are asking the question.
00:03
Mitchell company has 1 .1 million of debts, 3 million of preferred stocks and this million of common equity, what would be its weight on common equity we need to find? so if i write here for this, we all know total capital value is basically made up of value of debt, value of deft plus value of preferred stock, value of preferred, if i write for this, preferred equity, right, preferred here, preferred equity, and in the end we need to write value of common equity, value of common equity.
00:58
Right.
01:01
So let's put all the values.
01:02
Value of debt is given as 1 .1 million right here.
01:06
Value of preferred stock is given as 3 million and this is 3 .3 million.
01:13
If i calculate this, this is 6 .3 plus 1 .1 which is if i write this is 7 .4 million...