Question
Dinklage Corp. has 11.1 million shares of common stock outstanding. The current share price is $52, and the book value per share is $3. The
Dinklage Corp. has 11.1 million shares of common stock outstanding. The current share price is $52, and the book value per share is $3. The company also has two bond issues outstanding. The first bond issue has a face value of $97 million, has a 8 percent coupon, and sells for 91 percent of par. The second issue has a face value of $76.59 million, has a 8 percent coupon, and sells for 94.7 percent of par. The first issue matures in 10 years, the second in 5 years. |
What is the company's capital structure weight of equity on a book value basis? 0.1529 0.1610 0.1658 0.1674 0.1690 |
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What is the company's capital structure weight of debt on a book value basis? |
0.7971 0.8390 0.8642 0.8726 0.8810 |
What is the company's capital structure weight of equity on a market value basis? |
0.7430 0.7821 0.8056 0.8134 0.8212 |
What is the company's capital structure weight of debt on a market value basis? 0.2070 0.2179 0.2244 0.2266 0.2288 |
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