Hero Manufacturing has 8 million shares of common stock outstanding. The current share price is $87and the book value per share is $6. The company also has two bond issues outstanding, both with semiannual coupons. The first bond issue has a face value $75 million and a coupon of10 percentand sells for 97 percent of par. The second issue has a face value of $50 million and a coupon of11 percentand sells for 105 percent of par. The first issue matures in 25 years, the second in 7 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.)

c.Which are more relevant?

• Market value weights
• Book value weights