Company capital structure weights on book value basis

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Reference no: EM132053236

Dinklage Corp has 4 million shares of common stock outstanding. The current share price is $83, 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 $90 million, a coupon of 6%, and sells for 98% of par. The second issue has a face value of $60 million, a coupon of 7%, and sells for 106% of par. The first issue matures in 21 years, the second in 3 years.

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

Equity/Value=

Debt/Value=

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

Equity/ Value=

Debt/Value=

Reference no: EM132053236

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