Organic Produce Corporation has 6.3 million shares of common stock outstanding, 350,000 shares of 5.8 preferred stock outstanding, and 150,000 of 7.1 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $74 per share and has a beta of 1.09, the preferred stock currently sells for $107 per share, and the bonds have 20 years to maturity and sell for 109 percent of par. The market risk premium is 6.8 percent, T-bills are yielding 4.3 percent, and the firm's tax rate is 34 percent.

Required:(a)

What is the firm's market value capital structure?(Do not round intermediate calculations. Round your answers to 4 decimal places (e.g., 32.1616).)

Market value weight of debtMarket value weight of preferred stockMarket value weight of equity

Vedder, Inc., has 5 million shares of common stock outstanding. The current share price is $73, and the book value per share is $9. Vedder also has two bond issues outstanding. The first bond issue has a face value of $60 million, a coupon rate of7 percent, and sells for 98 percent of par. The second issue has a face value of $40 million, a coupon rate of 6.5 percent, and sells for 97 percent of par. The first issue matures in 20 years, the second in 12 years.

Required:(a)

What are the company's capital structure weights on a book value basis?(Do not round intermediate calculations. Round your answers to 4 decimal places (e.g., 32.1616).)

Book value weight of equityBook value weight of debt

(b)

What are the company's capital structure weights on a market value basis?(Do not round intermediate calculations. Round your answers to 4 decimal places (e.g., 32.1616).)

Market value weight of equityMarket value weight of debt