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Dinklage Corp. has 9.1 million shares of common stock outstanding. The current share price is $47, and the book value per share is $3. The

  1. Dinklage Corp. has 9.1 million shares of common stock outstanding. The current share price is $47, and the book value per share is $3. The company also has two bond issues outstanding. The first bond issue has a face value of $72 million, has a 9 percent coupon, and sells for 95 percent of par. The second issue has a face value of $60.97 million, has a 9 percent coupon, and sells for 98.8 percent of par. The first issue matures in 10 years, the second in 6 years

    1. What is the company's capital structure weight of equity on a book value basis?

      1. 0.1618

      2. 0.1703

      3. 0.1754

      4. 0.1772

      5. 0.1789

    2. What is the company's capital structure weight of debt on a book value basis?

      1. 0.7882

      2. 0.8297

      3. 0.8546

      4. 0.8628

      5. 0.8711

    3. What is the company's capital structure weight of equity on a market value basis?

      1. 0.7303

      2. 0.7688

      3. 0.7918

      4. 0.7995

      5. 0.8072

    4. What is the company's capital structure weight of debt on a market value basis?

      1. 0.2197

      2. 0.2312

      3. 0.2382

      4. 0.2405

      5. 0.2428

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