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14-7 7 Dinklage Corporation has 10.1 million shares of common stock outstanding. The current share price is $53, and the book value per share is
14-7
7 Dinklage Corporation has 10.1 million shares of common stock outstanding. The current share price is $53, 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 $77 million, has a 7 percent coupon, and sells for 94 percent of par. The second issue has a face value of $58.58 million, has a 7 percent coupon, and sells for 97.1 percent of par. The first issue matures in 9 years, the second in 6 years. 10 points What is the company's capital structure weight of equity on a book value basis? Equity/Value What is the company's capital structure weight of debt on a book value basis? Debt/Value What is the company's capital structure weight of equity on a market value basis? Equity/Value What is the company's capital structure weight of debt on a market value basis? Debt/Value
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