Question
Dinklage Corp. has 8.1 million shares of common stock outstanding. The current share price is $47, and the book value per share is $5. The
Dinklage Corp. has 8.1 million shares of common stock outstanding. The current share price is $47, 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, has a 7 percent coupon, and sells for 94 percent of par. The second issue has a face value of $54.27 million, has a 7 percent coupon, and sells for 98 percent of par. The first issue matures in 11 years, the second in 6 years.
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