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Business, 28.11.2019 21:31 laurentsupreme

Hero manufacturing has 9 million shares of common stock outstanding. the current share price is $88 and the book value per share is $7. the company also has two bond issues outstanding, both with semiannual coupons. the first bond issue has a face value $80 million and a coupon of 5 percent and sells for 98 percent of par. the second issue has a face value of $55 million and a coupon of 6 percent and sells for 106 percent of par. the first issue matures in 20 years, the second in 8 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., .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.) a. equitylvalue debtvalue b. equity/value debtvalue c. which are more relevant? market value weights book value weights

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Hero manufacturing has 9 million shares of common stock outstanding. the current share price is $88...
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