Dinklage Corp. has 7 million shares of common stock outstanding. The current share price is $86, 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 $70 million, a coupon of9 percent, and sells for 96 percent of par. The second issue has a face value of $45 million, a coupon of10 percent, and sells for 104 percent of par. The first issue matures in 24 years, the second in 6 years.

a.	What are the company's capital structure weights on a book value basis?(Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.)

Equity/Value
Debt/Value

b.	What are the companys capital structure weights on a market value basis?(Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.)

Equity/Value
Debt/Value

2)

Dinklage Corp. has 9 million shares of common stock outstanding. The current share price is $75, 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 $85 million, a coupon rate of10 percent, and sells for 96 percent of par. The second issue has a face value of $65 million, a coupon rate of11 percent, and sells for 109 percent of par. The first issue matures in 25 years, the second in 9 years.

Suppose the most recent dividend was $4.70 and the dividend growth rate is 6 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 34 percent. What is the companys WACC?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)