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Bonaime, Inc. has 75 million shares of common stock outstanding. The current share price is 562 50, and the book value per she is $550

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Bonaime, Inc. has 75 million shares of common stock outstanding. The current share price is 562 50, and the book value per she is $550 The company also has two bond issues outstanding. The test bond issue has a tace value of $715 milion, a coupon rate of 7 percent and sets for 90.5 percent of par The second issue has a face value of $3,5 million, a coupon rate of percent and selbs to 89.5 percent of par The first issue matures in 20 years, the second in 12 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. 32.1615) Book value weight of equity Book valoe weight of debt b. What are the company's capital structure weights on a market value (Do not round intermediate calculations and round your answers to 4 decimal places... 13.1516) Market value weight of equity Market val weight of debt c. Which are more relevant , the book of market value weights [Click to sled) Hints References eBook & Resources Type here to search RI 207 PM 1620 0

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