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Business, 05.12.2019 00:31 yhhh

Dinklage corp. has 6 million shares of common stock outstanding. the current share price is $85, and the book value per share is $8. the company also has two bond issues outstanding. the first bond issue has a face value of $65 million, a coupon of 8 percent, and sells for 95 percent of par. the second issue has a face value of $40 million, a coupon of 9 percent, and sells for 108 percent of par. the first issue matures in 23 years, the second in 5 years. both bonds make semiannual coupon payments.

a. what are the company's capital structure weights on a book value basis? (do not round intermediate calculations and round your answers to 4 decimal places, e. g., .1616.)

b. what are the company’s capital structure weights on a market value basis? (do not round intermediate calculations and round your answers to 4 decimal places, e. g., .1616.)

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Dinklage corp. has 6 million shares of common stock outstanding. the current share price is $85, and...
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