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please show all work neatly! Thank you! Weiner Corporation has 4 million shares of common stock outstanding. The current share price is $70, and the
please show all work neatly! Thank you!
Weiner Corporation 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, a coupon rate of 7 percent, and sells for 95 percent of par. The second issue has a face value of $60 million, 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. 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.) Answer is complete but not entirely correct. a. Equity/Value a. Debt/Value b. Equity/Value b. Debt/Value 0.2105 0.7895 0.0136 0.0066
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