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Dinklage Corp. has 5 million shares of common stock outstanding. The current share price is $71, and the book value per share is $6. The

Dinklage Corp. has 5 million shares of common stock outstanding. The current share price is $71, and the book value per share is $6. The company also has two bond issues outstanding. The first bond issue has a face value of $65 million, a coupon of 6 percent, and sells for 96 percent of par. The second issue has a face value of $45 million, a coupon of 7 percent, and sells for 105 percent of par. The first issue matures in 21 years, the second in 5 years.

a.

What are the company's capital structure weights on a book value basis?

b.

What are the companys capital structure weights on a market value basis?

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

Market Value

Book Value

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