Dani Corporation has $8$ million shares of common stock outstanding. The current share price is $$80,$ and the book value per share is $$8.$ The company also has two bond issues outstanding. The first bond issue has a face value of $$125$ million, a coupon rate of $5$ percent, and sells for $91$ percent of par. The second issue has a face value of $$110$ million, a coupon rate of $4$ percent, and sells for $106$ percent of par. The first issue matures in $23$ years, the second in $9$ 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$.,\mathrm{.}1616.)$

Answers:

a$.$ Equity$/$Value $=?$

a$.$ Debt$/$Value $=?$

b$.$ Equity$/$Value $=?$

b$.$ Debt$/$Value $=?$

c$.$ Which are more relevant, the book or market value weights?

multiple choice:

Market value

Book value