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Dinklage Corp. has 7 million shares of common stock outstanding. The current share price is $79, and the book value per share is $10. The
Dinklage Corp. has 7 million shares of common stock outstanding. The current share price is $79, and the book value per share is $10. The company also has two bond issues outstanding. The first bond issue has a face value of $120 million, a coupon rate of 4 percent, and sells for 92 percent of par. The second issue has a face value of $105 million, a coupon rate of 3 percent, and sells for 104 percent of par. The first issue matures in 22 years, the second in 7 years. Both bonds make semiannual coupon payments 0 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 1616.) b. What are the company's capital structure weights on a market value basis? (Do not round Intermedlate calculations and round your answers to 4 declmal places, e.g. .1616.) DebtValue b. Equity/Value DebtValue
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