Question
Company has 6 million shares of common stock outstanding.The current share price is $66, and the book value per share is $5. The company also
Company has 6 million shares of common stock outstanding.The current share price is $66, and the book value per share is $5. The company also has two bond issues outstanding. The first bond issue has a face value of $55 million, has a coupon rate of 6 percent, and sells for 91 percent of par.The second bond has a face value of $40 million, has a coupon rate of 5 percent, and sells for 103 percent of par. The first issue matures in 21 years, the second in 6 years. Both bonds make semi annual payments
What are the company's capital structure weighed?
Equity/Value
Debit / Value
What are the company's capital structure weighed?
Equity/Value
Debit/ Value
What are the more relevant, the book or market value?
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