Here I Sit Sofas has 6,600 shares of common stock outstanding at a price of $89 per share. There are 950 bonds that mature in 25 years with a coupon rate of 6.3 percent paid semiannually. The bonds have a par value of $1,000 each and sell at 106 percent of par. The company also has 5,500 shares of preferred stock outstanding at a price of $42 per share. What is the capital structure weight of the debt

55.17 %

Explanation:

We use the Market Values of Sources of Capital to determine their Weight in  Capital Structure.

Weight of the debt = Market Value of Debt / Total Market Value x 100

where,

Market Value of Debt = 950 x $1,000 x 106% = $1,007,000

Market Value of Common Stock = 6,600 x $89 = $587,400

Market Value of Preferred Stock = 5,500 x $42 = $231,000

therefore,

Weight of the debt = $1,007,000 / $1,825,400 x 100

                                = 55.17 %

thus,

The capital structure weight of the debt is 55.17 %

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

the answer is a. $209,000