FROM THE INFORMATION GIVEN BELOW Calculate the Capital Struc…

FROM THE INFORMATION GIVEN BELOW Cаlculаte the Cаpital Structure оf the firm using the Bооk Values provided.  (you are not calculating the entire WACC) As a consultant to GBH Skiwear, you have been asked to compute the appropriate discount rate to use to evaluate the purchase of a new warehouse facility.  You have determined the Book values of the firm’s capital structure as follows:             SOURCE OF CAPITAL BOOK VALUE Bank Loan     Bonds 100,000   $500,000 Preferred stock $200,000 Common stock Retained Earnings   $100,000 $400,000                   To finance the purchase, GBH will borrow $100,000 from The Island Bank, sell 20-year bonds, paying 8 percent per year, at the market price of $1050.  Flotation costs for issuing the bonds are 6 percent of the market price.  Preferred stock paying a $2.50 dividend can be sold for $45; the cost of issuing these shares is $5 per share.  Common stock for GBH is currently selling for $75 per share.  The firm paid a $2 dividend last year and expects dividends to continue growing a rate of 10 percent per year.  Flotation costs for issuing new common stock will be 10 percent of the market price.  The firm’s marginal tax rate is 40 percent.   The Capital Structure of this firm is: