Wang Ltd has 10 million ordinary shares outstanding.Its most recent share price is $7. The book value per share is $1.20.The company also has two debenture issues outstanding. The first issue has a face value of $20 million, a 6% coupon and sells for 90 per cent of its face value. The second issue has a face value of $25 million, a 7% coupon and sells for 88% of its face value.

i.What are Wang Ltd's capital structure weights on a book value basis?

ii.What are Wang Ltd's capital structure weights on a market value basis?

iii.Which is more relevant, the book value or market value weights? Why?