Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Dinklage Corp has 8 million shares of common stock outstanding The current share price is ...

Dinklage Corp has 8 million shares of common stock outstanding The current share price is $80 and the book value per share is $7 The company also has two bond issues outstanding

Dinklage Corp. has 8 million shares of common stock outstanding. The current share price is $80, 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 $75 million, a coupon of 9 percent, and sells for 95 percent of par. The second issue has a face value of $45 million, a coupon of 10 percent, and sells for 108 percent of par. The first issue matures in 24 years, the second in 7 years. 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., 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? Market value Book value

 

Apr 09 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions