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7 Hero Manufacturing has 6 million shares of common stock outstanding. The current share price is $78 and the book value per share is $5.

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7 Hero Manufacturing has 6 million shares of common stock outstanding. The current share price is $78 and the book value per share is $5. The company also has two bond issues outstanding, both with semiannual coupons. The first bond issue has a face value $65 million and a coupon of 7 percent and sells for 98 percent of par. The second issue has a face value of $35 million and a coupon of 8 percent and sells for 106 percent of par. The first issue matures in 22 years, the second in 5 years 10 points a. What are the company's capital structure weights on a book value basis? (Do not eBook Hint Print References 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/Nalue DebtValue b. Equity/Value Debt/Value

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