Question: bubb points Problem 14-12 Book Value versus Market Value (L03] Dinklage Corp. has 7 million shares of common stock outstanding. The current share price is

 bubb points Problem 14-12 Book Value versus Market Value (L03] Dinklage

bubb points Problem 14-12 Book Value versus Market Value (L03] Dinklage Corp. has 7 million shares of common stock outstanding. The current share price is $73, 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 $75 million, a coupon of 8 percent, and sells for 98 percent of par. The second issue has a face value of $55 million, a coupon of 9 percent, and sells for 107 percent of par. The first issue matures in 23 years, the second in 7 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 decimal places, 06-22.1016.) Equity value Debt Value b. What are the company's capital structure weights on a market value basis? (Do not round intermediate calculations and round your answers to decimal places, ... 32. 1616.) Equity value Debt Value

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