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4 10 points eBook B Hint Print References Dani Corporation has 5 million shares of common stock outstanding. The current share price is $77 and
4 10 points eBook B Hint Print References Dani Corporation has 5 million shares of common stock outstanding. The current share price is $77 and the book value per share is $8. The company also has two bond issues outstanding, both with semiannual coupons. The first bond issue has a face value $60 million, a coupon of 6 percent, and sells for 97 percent of par. The second issue has a face value of $30 million, a coupon of 7 percent, and sells for 105 percent of par. The first issue matures in 21 years, the second in 4 years. a. What are the company's capital structure weights on a book value basis? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 1616.) b. What are the company's capital structure weights on a market value basis? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 1616.) a. Equity/Value a. Debt/Value b. Equity/Value b. Debt/Value c. Which are more relevant? O Market value weights O Book value weights
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