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Please help! Thank you in advance :) Module 11,12: Risk & Return II, WACC Saved Help Save & Exit Submit Check my work 19 Masterson,

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Module 11,12: Risk & Return II, WACC Saved Help Save & Exit Submit Check my work 19 Masterson, Inc., has 4 million shares of common stock outstanding. The current share price is $70, and the book value per share is $9. The company also has two bond issues outstanding. The first bond issue has a face value of $75 million, has a coupon rate of 7 percent, and sells for 95 percent of par. The second issue has a face value of $60 million, has a coupon rate of 6 percent, and sells for 107 percent of par. The first issue matures in 25 years, the second in 8 years. Both bonds make semiannual coupon payments. 10 points Skipped eBook 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, the book or market value weights? Hint Print References a. Equity/Value Debt/Value b. EquityValue Debt/Value c. More relevant Mc Graw Prev 19 of 23 II Next '111'.iririni

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