Comstock has 8.2 million shares of common stock outstanding. The current share price is \($32,\) and the book value per share is \($23.\) Comstock also has two bond issues outstanding. The first bond issue has a face value of \($70\) million, a 7 percent coupon, and sells for 86 percent of par. The second issue has a face value of \($50\) million, a 6.5 percent coupon, and sells for 82 percent of par. The first issue matures in 10 years, the second in 6 years.

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

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

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