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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 6.6 milion shares of common stock outstanding. The current share price is $61.60, and the book value per share is $4.60. The company also has two bond issues outstanding. The first bond issue has a face value of $70.6 million, a coupon rate of 71 percent, and sells for 95 percent of par. The second issue has a face value of $35.6 million, a coupon rate of 7.1 percent, and sells for 94 percent of par. The first issue matures in 21 years, the second in 13 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 4 decimal places, e.g.,32.1616.)
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 4 decimal places, e.g.,321616.)
c. Which are more relevant, the book or market value weights?
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