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Dani Corporation has 7 million shares of common stock outstanding. The current share price is $ 7 9 , 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, a coupon rate of percent, and sells for percent of par. The second issue has a face value of $ million, a coupon rate of percent, and sells for percent of par. The first issue matures in years, the second in years.
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?
tablea EquityValueDebtValueb EquityNalueDebtValuevdots
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