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Dinklage Corp. has 5 million shares of common stock outstanding. The current share price is $65, and the book value per share is $4. The

Dinklage Corp. has 5 million shares of common stock outstanding. The current share price is $65, 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 $50 million, a coupon rate of5 percent, and sells for 90 percent of par. The second issue has a face value of $35 million, a coupon rate of4 percent, and sells for 102 percent of par. The first issue matures in 20 years, the second in 5 years. Both bonds make semiannual coupon payments.

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

Equity/Value-

Debt/Value-

b.What are the company's capital structure weights on a market value basis?

Equity/Value-

Debt/Value-

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