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Bonalme, Inc., has 6 . 6 milion shares of common stock outstanding. The current share price is $ 6 1 . 6 0 , and
Bonalme, Inc., has milion shares of common stock outstanding. The current share price is $ and the book value per share is $ The company also has two bond issues outstanding. The first bond issue has a face value of $ million, a coupon rate of percent, and sells for percent of par. The second issue has a face value of $ million, a coupon rate of percent, and sells for percent of par. The first issue matures in years, the second in years.
a What are the company's capltal structure welghts on a book value basis? Do not round intermedlate calculations and round your answers to decimal places, eg
Book value weight of equity
Book value weight of debt
b What are the company's capital structure welghts on a market value basis? Do not round Intermediate calculations and round your answers to decimal places, eg
c Which are more relevant, the book or market value weights?
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