Problem $14-12$ Book Value versus Market Value $[$LO$3]$

Dani Corporation has $8$ million shares of common stock outstanding. The current share

price is $$82,$ and the book value per share is $$6.$ The company also has two bond issues

outstanding. The first bond issue has a face value of $$135$ million, a coupon rate of $7$

percent, and sells for $93$ percent of par. The second issue has a face value of $$120$

million, a coupon rate of $6$ percent, and sells for $102$ percent of par. The first issue

matures in $25$ years, the second in $9$ years. Both bonds make semiannual coupon

payments.

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$.,$

$\mathrm{.}1616.)$

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$.,$

$\mathrm{.}1616.)$

b$.$ Debt$/$Value