What are company xs capital structure weights on a market

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Company X has 4 million shares of common stock outstanding. The current share price is $76, and the book value per share is $5. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value $90 million, has a coupon of 5 percent, and sells for 94 percent of par. The second issue has a face value of $70 million, has a coupon of 6 percent, and sells for 104 percent of par. The first issue matures in 20 years, the second in 3 years.

a. What are Company X's capital structure weights on a book value basis?

b. What are Company X's capital structure weights on a market value basis?

c. Which are more relevant and why?

Reference no: EM13328246

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