Give typing answer with explanation and conclusion Pandora Manufacturing has 5 million shares of common stock outstanding. The current share price is $84, and thebook value per share is $7. The company also has two bond issues outstanding. The first bond issue has a face value of$60 million and a coupon rate of 7 percent and sells for 94 percent of par. The second issue has a face value of $35million and a coupon rate of 8 percent and sells for 107 percent of par. The first issue matures in 22 years, the second in4 years.b.C.What are the company's capital structure weights on a book value basis? (Do not round intermediate calculationsand round your answers to 4 decimal places, e.g., .1616.)What are the company's capital structure weights on a market value basis? (Do not round intermediatecalculations and round your answers to 4 decimal places, e.g., .1616.)Which are more relevant, the book or market value weights?a. equity value??debit value??b. equity value ?????debit value??

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Description: Give typing answer with explanation and conclusion Pandora Manufacturing has 5 million shares of common stock outstanding. The current share price is $84, and thebook value per share is $7. The company also has two bond issues outstanding. The first

First we need to determine the book value and market value of each source of capital. Book value…

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b. C. 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., .1616.) 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., .1616.) Which are more relevant, the book or market value weights?

b. C. 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., .1616.) 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., .1616.) Which are more relevant, the book or market value weights?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter20: Financing With Derivatives

Section: Chapter Questions

Problem 14P

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