Pandora Manufacturing has 5.8 million shares of common stock outstanding. The current share price is $52, 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, a coupon rate of 6.1 percent, and sells for 108.3 percent of par. The second issue has a face value of $40 million, has a coupon rate of 6.3 percent, and sells for 108.9 percent of par. The first issue matures in 8 years, the second in 27 years.

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

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

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