Question
Dinklage Corp. has 11.1 million shares of common stock outstanding. The current share price is $51, and the book value per share is $4. The
Dinklage Corp. has 11.1 million shares of common stock outstanding. The current share price is $51, and the book value per share is $4. The company also has two bond issues outstanding. The first bond issue has a face value of $95 million, has a 7 percent coupon, and sells for 92 percent of par. The second issue has a face value of $65.49 million, has a 7 percent coupon, and sells for 94.8 percent of par. The first issue matures in 11 years, the second in 6 years. |
a. What is the company's capital structure weight of equity on a book value basis? |
b. What is the company's capital structure weight of debt on a book value basis?
c. What is the company's capital structure weight of equity on a market value basis?
d. What is the company's capital structure weight of debt on a market value basis? |
can you be clear on the answers please thank you
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