Question
Dinklage Corp. has 11.1 million shares of common stock outstanding. The current share price is $53, and the book value per share is $5. The
Dinklage Corp. has 11.1 million shares of common stock outstanding. The current share price is $53, and the book value per share is $5. The company also has two bond issues outstanding. The first bond issue has a face value of $98 million, has a 7 percent coupon, and sells for 95 percent of par. The second issue has a face value of $75.48 million, has a 7 percent coupon, and sells for 98.2 percent of par. The first issue matures in 9 years, the second in 5 years.
What is the company's capital structure weight of equity on a book value basis?
What is the company's capital structure weight of debt on a book value basis?
What is the company's capital structure weight of equity on a market value basis?
What is the company's capital structure weight of debt on a market value basis?
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