ABC Corp. has 7 million shares of common stock outstanding. The current share price is $68, and the book value of per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $70 million, a coupon rate of 6%, and sells for 97% of par. The second issue has a face value of $40 million, a coupon rate of 6.5%, and sells for 108 % of par. The first issue matures in 21 years, the second in 6 years. Both bonds make semiannual coupon payments.

a. What are the companys capital structure weighs on a book value basis?

b. What are the companys capital structure weighs on a market value basis?

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