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Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $78, and the book value per share is $9. The

Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $78, and the book value per share is $9. The company also has two bond issues outstanding. The first bond issue has a face value of $115 million, a coupon rate of 7 percent, and sells for 93 percent of par. The second issue has a face value of $100 million, a coupon rate of 6 percent, and sells for 105 percent of par. The first issue matures in 21 years, the second in 8 years. Both bonds make semiannual coupon payments.

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

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

(answer equity/value and debt/value for both A and B)

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