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2. The common stock of Swank Inc. is currently selling for $60 per share, has a book value of $45 per share, and there are

2. The common stock of Swank Inc. is currently selling for $60 per share, has a book value of $45 per share, and there are 800,000 shares of common stock outstanding. In addition, the firm also has 80,000 bonds outstanding with a par value of $ 1,000 that are selling at 110 percent of par. What are the capital structure weights that swanks should use to analyse its capital structure? [4 marks]

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