Question: Ch 12 Homework Saved Help Save & Exit Subr Ten Pins Manufacturing has 7 million shares of common stock outstanding. The current share price is

 Ch 12 Homework Saved Help Save & Exit Subr Ten Pins

Ch 12 Homework Saved Help Save & Exit Subr Ten Pins Manufacturing has 7 million shares of common stock outstanding. The current share price is $79, and the book value per share is $6. The company also has two bond issues outstanding. The first bond issue has a face value of $70 million and a coupon rate of 8 percent and sells for 94 percent of par. The second issue has a face value of $40 million and a coupon rate of 9 percent and sells for 107 percent of par. The first issue matures in 23 years, the second in 6 years 6.66 points a. What are the company's capital structure weights on a book value basis? (Do not round intermediate calculations and round your o1sos4 answers to 4 decimal places, eg, 32.1616.) Equity/Value Debt/Value eBook Hint Print References 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. 321616.) Equity/Value Debt/Value c. Which are more relevant, the book or market value weights? O Market value O Book value

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