Masterson, Inc., has 9 million shares of common stock outstanding. The current share price is $75, and the book value per share is $6. The company also has two bond issues outstanding. The first bond issue has a face value of $100 million, has a coupon rate of 4 percent, and sells for 96 percent of par. The second issue has a face value of $85 million, has a coupon rate of 3 percent, and sells for 108 percent of par. The first issue matures in 24 years, the second in 7 years. Both bonds make semiannual coupon payments.

1. What are the companys capital structure weights on a book value basis?
2. What are the companys capital structure weights on a market value basis?
3. Which are more relevant, the book or market value weights?

1. Equity/Value:

Debt/Value:

2. Equity/Value:

Debt/Value:

3. More Relevant: