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Ten Pins Manufacturing has 9 million shares of common stock outstanding. The current share price is $88, and the book value per share is $7.

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Ten Pins Manufacturing has 9 million shares of common stock outstanding. The current share price is $88, and the book value per share is $7. The company also has two bond issues outstanding. The first bond issue has a face value of $80 million and a coupon rate of 5 percent and sells for 98 percent of par. The second issue has a face value of $55 million and a coupon rate of 6 percent and sells for 106 percent of par. The first issue matures in 20 years, the second in 8 years. a. What are the company's capital structure welghts 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 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., 32.1616.) Equity/Value Debt/Value c. Which are more relevant, the book or market value weights? O Market value O Book value

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