A firm has the following capital structure: 1. bonds with market value of $2,000,000 2. preferred stock with a market value of $700,000 3. common stock, of which 100,000 shares is outstanding. presently, each common stock is selling at $20 per share. What is the total value of the common stock?
1) $2,000,000
2) $700,000
3) $2,000,000 + $700,000
4) $20 * 100,000
