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Dani Corporation has 6 million shares of common stock outstanding. The current share price is $ 7 2 , and the book value per share
Dani Corporation has million 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, has a coupon rate of percent, and sells for percent of par. The second issue has a face value of $ million, has a coupon rate of percent, and sells for percent of par. The first issue matures in years, the second in years. Both bonds make semiannual coupon payments.Dani Corporation has million 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, has a coupon rate of
percent, and sells for percent of par. The second issue has a face value of $ million, has a coupon rate of percent, and sells for
percent of par. The first issue matures in years, the second in years. Both bonds make semiannual coupon payments.
a What are the company's capital structure weights on a book value basis?
Note: Do not round intermediate calculations and round your answers to decimal places, eg
b What are the company's capital structure weights on a market value basis?
Note: 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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