Dinklage corp has 5 million shares of common stock, Ask an Expert

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Dinklage Corp. has 5 million shares of common stock outstanding. The current share price is $84, 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 $60 million, a coupon of 7 percent, and sells for 94 percent of par. The second issue has a face value of $35 million, a coupon of 8 percent, and sells for 107 percent of par. The first issue matures in 22 years, the second in 4 years.

a. What are the company's capital structure weights on a book value basis?

b. What are the company’s capital structure weights on a market value basis?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92100336

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