Dani Corporation has $7$ million shares of common stock outstanding.

The current share price is $$67,$ and the book value per share is $$6.$ The

company also has two bond issues outstanding. The first bond issue

has a face value of $$60$ million, a coupon rate of $7$ percent, and sells

for $92$ percent of par. The second issue has a face value of $$45$ million,

a coupon rate of $6$ percent, and sells for $104$ percent of par. The first

issue matures in $22$ years, the second in $7$ years. Both bonds make

semiannual coupon payments.

a$.$ What are the company's capital structure weights on a book value

basis? $($Do not round intermediate calculations and round your

answers to $4$ decimal places, e$.$g$.,\mathrm{.}1616.)$

b$.$ What are the company's capital structure weights on a market value

basis? $($Do not round intermediate calculations and round your

answers to $4$ decimal places, e$.$g$.,\mathrm{.}1616.)$

c$.$ Which are more relevant, the book or market value weights? $\begin{array}{cc}a.\text{E}\text{q}\text{u}\text{i}\text{t}\frac{y}{V}\text{a}\text{l}\text{u}\text{e}& ?\\ a.\text{D}\text{e}\text{b}\frac{t}{V}\text{a}\text{l}\text{u}\text{e}& ?\\ b.\text{E}\text{q}\text{u}\text{i}\text{t}\frac{y}{V}\text{a}\text{l}\text{u}\text{e}& ?\\ b.\text{D}\text{e}\text{b}\frac{t}{V}\text{a}\text{l}\text{u}\text{e}& ?\end{array}$

Market value

Book value