Business, 26.11.2019 07:31 amir6658

Dinklage corp. has 4 million shares of common stock outstanding. the current share price is $70, and the book value per share is $5. the company also has two bond issues outstanding. the first bond issue has a face value of $60 million, a coupon of 5 percent, and sells for 95 percent of par. the second issue has a face value of $40 million, a coupon of 6 percent, and sells for 104 percent of par. the first issue matures in 20 years, the second in 4 years.
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., 32.1616.) equity/value debt/value
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., 32.1616.) equity/value debt/value
c. which are more relevant, the book or market value weights? market value book value

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Dinklage corp. has 4 million shares of common stock outstanding. the current share price is $70, and...

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