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Ten Pins Manufacturing has 8 million shares of common stock outstanding. The current share price is $87, and the book value per share is $6.

Ten Pins Manufacturing has 8 million shares of common stock outstanding. The current share price is $87, 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 $75 million and a coupon rate of 10 percent and sells for 97 percent of par. The second issue has a face value of $50 million and a coupon rate of 11 percent and sells for 105 percent of par. The first issue matures in 25 years, the second in 7 years. a. What are the companys capital structure weights on a book value basis? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.) Equity/Value Debt/Value b. What are the companys capital structure weights on a market value basis? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.) Equity/Value Debt/Value c. Which are more relevant, the book or market value weights? Market value Book value

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