(3) Estimate Capital Structure - Estimate the firm’s weights of debt, preferred stock, and common stock using the firm’s balance sheet (book value). - Estimate the firm’s weights of debt, preferred...

DENBURY RESOURCES
Denbury Resources is a Texas based company into energy sector. It is engaged in hydrocarbon exploration. It is involved in oil and natural gas exploration. It operates in Gulf Coast and Rocky Mountains.
CAPITAL STRUCTURE (BOOK VALUE)
We have taken the value of debt and common equity from the balance sheet of the company. Thus, we obtain the book value of the debt and common equity of the fir. The firm does not have any preferred stock.
Now to obtain the weights of debt and equity we divide the value of debt by total value of from which is debt plus equity.
    CAPITAL STRUCTURE (BOOK VALUE)
    
    Amount (in 000')
    Weight
    Debt
    $ 22,32,570
    61.25%
    Preferred Stock
    $ -
    0.00%
    Common Stock
    $ 14,12,259
    38.75%
CAPITAL STRUCTURE (MARKET VALUE)
To obtain the market value of common stock we need to obtain the current share price and number of outstanding shares of the company. We obtained this data from YAHOOFINANCE. The current stock price of the company is $ 0.2430 and the no of outstanding shares is 506.32 million. We obtain the market value of common stock by multiplying both of them. The market value of common stock is $ 128,099. The market value of debt is same as the book value of debt. Thus, we get the market value/ book value of debt from the balance sheet.
    CAPITAL STRUCTURE (MARKET VALUE)
    
    Amount (in...