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Masterson, Inc., has 9 million shares of common stock outstanding. The current share price is $69, and the book value per share is $8. The

Masterson, Inc., has 9 million shares of common stock outstanding. The current share price is $69, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $70 million, has a coupon rate of 6 percent, and sells for 94 percent of par. The second issue has a face value of $55 million, has a coupon rate of 5 percent, and sells for 106 percent of par. The first issue matures in 24 years, the second in 9 years. Both bonds make semiannual coupon payments.

a.

What are the company's capital structure weights on a book value basis?

b. what are the companys structure weights on a market value basis

c. Which are more relevant, the book or market value weights?

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