Hero Manufacturing has 5 million shares of common stock outstanding. The current share price is $84 and the book value per share is $7. The company also has two bond issues outstanding, both with semiannual coupons. The first bond issue has a face value $60 million and a coupon of 7 percent and sells for 94 percent of par. The second issue has a face value of $35 million and a coupon of 8 percent and sells for 107 percent of par. The first issue matures in 22 years, the second in 4 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., .1616.)

b.

What are the company's capital structure weights on a market value basis? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.)

.	Which are more relevant?

• Market value weights

• Book value weights