Company capital structure weights on market value basis

Assignment Help Financial Management

Reference no: EM131537806

Bonaime, Inc., has 7.9 million shares of common stock outstanding. The current share price is $62.90, and the book value per share is $5.90. The company also has two bond issues outstanding. The first bond issue has a face value of $71.9 million, a coupon rate of 7.4 percent, and sells for 88.5 percent of par. The second issue has a face value of $36.9 million, a coupon rate of 8.4 percent, and sells for 87.5 percent of par. The first issue matures in 18 years, the second in 10 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.)

Book value weight of equity

Book value weight of debt

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.)

Market value weight of equity

Market value weight of debt

Reference no: EM131537806

Questions Cloud

What credibility issues can arise from information : What credibility issues can arise from information on Internet? How might knowing these advantages and disadvantages alter how a person might use social media?

Difference between risk-free interest rate-dividend yield : What is the implied difference between the risk-free interest rate and the dividend yield on the S&P 500?

Give the journal entries recording the admission of brown : Green and Blue agree to admit Brown into partnership as from 1st January, 1961. Brown is to receive a one-fifth share of the profits, Green and Blue.

Explain the difference between hedging and spreading risk : Explain the difference between hedging and spreading risk.

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

Prepare appropriation section of the firms profit and loss : Peele and Mellis conduct a merchanting business in partnership on the following terms.

Explore healthcare disparities in the us : Explore healthcare disparities in the U.S. and determine the groups of people most likely to experience discrimination in healthcare services.

What is the theory of probability : Discuss probability. What is its history? What is the theory of probability? How is it calculated? What are the advantages and disadvantages.

Structure of the united nations human rights council : esearch the organizational structure of the United Nations Human Rights Council. What are the goals of the organization

User Account

All Pages