Question: find equity/value amd debt value on book value basis and market value basis Dinklage Corp has 7 million shares of common stock outstanding. The current

find equity/value amd debt value on book value basis and market value basis
find equity/value amd debt value on book value basis and market value

Dinklage Corp 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, a coupon of 8 percent, and sells for 94 percent of par. The second issue has a face value of $40 million, a coupon of 9 percent, and sells for 107 percent of par. The first issue matures in 23 years, the second in 6 years a. What are the company's capital structure weights on a book value basis? (Do not found intermediate calculations and round your answers to 4 decimal places, 6.9., 32.1616.) 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 4 decimal places, 0.g. 32.1616.) Equity/Value DebtValue c. Which are more relevant, the book or market value weights? Market value Book value

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