Question
(Calculating capital structure weights) The common stock of Moe's Restaurant is currently selling for $80 per share, has a book value of $60per share, and
(Calculating capital structure weights)The common stock of Moe's Restaurant is currently selling for $80 per share, has a book value of $60per share, and there are 1.17million shares of common stock outstanding. In addition, the firm also has 115,000 bonds outstanding with a par value of 1,000 that are selling at 113 percent of par. What are the capital structure weights that Moe's should use to analyze its capital structure?
The weight of the debt in the capital structure is _____%. (Round to two decimal places.)
The weight of the equity in the capital structure is ____%.(Round to two decimal places.)
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