Problem $12-11$ Book Value versus Market Value $[$LO$4]$

Dani Corporation has $5$ million shares of common stock outstanding. The current share price is $$65,$ and the book value per share is $$4.$ The company also has two bond issues outstanding. The first bond issue has a face value of $$50$ million, has a coupon rate of $5$ percent, and sells for $90$ percent of par. The second issue has a face value of $$35$ million, has a coupon rate of $4$ percent, and sells for $102$ percent of par. The first issue matures in $20$ years, the second in $5$ years. Both bonds make semiannual coupon payments.

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

Note: Do not round intermediate calculations and round your answers to $4$ decimal places, e$.$g$.,.1616.$

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

Note: Do not round intermediate calculations and round your answers to $4$ decimal places, e$.$g$.,.1616.$

c$.$ Which are more relevant, the book or market value weights?

$\backslash$table$[[$a$.$ Equity$/$Value$,],[$Debt$/$Value$,],[$b$.$ Equity$/$Value$,],[$Debt$/$Value$,],[$c$.$ More relevant,$]]$