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

Dani Corporation has $4\mathrm{.}2$ million shares of common stock outstanding. The current share price is $$83,$ and the book value per share is

$$8.$ The company also has two bond issues outstanding. The first bond issue has a face value of $$80$ million and a coupon rate of $5\mathrm{.}5$

percent, and sells for $98$ percent of par. The second issue has a face value of $$55$ million and a coupon rate of $5\mathrm{.}8$ percent, and sells

for $105$ percent of par. The first issue matures in $21$ years, the second in $6$ 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$.,3216.$

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$.,.3216.$

Answer is complete but not entirely correct.

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

Market value

Book value