Capital structure weights on market value basis

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Dinklage Corp. has 8 million shares of common stock outstanding. The current share price is $73, and the book value per share is $7. The company also has two bond issues outstanding. The first bond issue has a face value of $85 million, a coupon of 7 percent, and sells for 97 percent of par. The second issue has a face value of $50 million, a coupon of 8 percent, and sells for 108 percent of par. The first issue matures in 21 years, the second in 6 years.

What are the company’s capital structure weights on a market value basis?

Reference no: EM131906473

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