Question
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
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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 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
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What is the company's capital structure weight of equity on a book value basis?
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0.1618
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0.1703
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0.1754
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0.1772
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0.1789
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What is the company's capital structure weight of debt on a book value basis?
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0.7882
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0.8297
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0.8546
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0.8628
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0.8711
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What is the company's capital structure weight of equity on a market value basis?
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0.7303
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0.7688
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0.7918
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0.7995
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0.8072
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What is the company's capital structure weight of debt on a market value basis?
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0.2197
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0.2312
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0.2382
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0.2405
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0.2428
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