Dinklage Corp. has 121 million shares of common stock outstanding. The current share price is $49, and the book value per share is $4. The company also has two bond Issues outstanding. The first bond issue has a face value of $92 million, has a 9 percent coupon, and sells for 96 percent of par The second Issue has a face value of $7744 milion, has a 9 percent coupon, and sells for 99 percent of par. The first Issue matures in 10 years, the second in 7 years. What is the company's capital structure weight of equity on a book value basis? What is the company's capital structure welght of debt on a book value basis? What is the company's capital structure welght of equity on a market value basis?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
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ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter20: Financing With Derivatives
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Dinklage Corp. has 121 mllion shares of common stock outstanding. The current share
price Is $49 and the book value per share Is $4. The company also has two bond Issues
outstanding The first bond Issue has a face value of $92 million, has a 9 percent
Coupon, and sells for 96 percent of par. The second Issue has a face value of $7744
million, has a9 percent coupon, and sells for 99 percent of par. The first Issue matures In
10 years, the second In 7 years.
What Is the company's capital structure welght of equity on a book value basIs?
What Is the company's capital structure welght of debt on a book value bass?
What Is the company's capital structure wellght of equity on a market value basls?
Transcribed Image Text:Submit Check my work Dinklage Corp. has 121 mllion shares of common stock outstanding. The current share price Is $49 and the book value per share Is $4. The company also has two bond Issues outstanding The first bond Issue has a face value of $92 million, has a 9 percent Coupon, and sells for 96 percent of par. The second Issue has a face value of $7744 million, has a9 percent coupon, and sells for 99 percent of par. The first Issue matures In 10 years, the second In 7 years. What Is the company's capital structure welght of equity on a book value basIs? What Is the company's capital structure welght of debt on a book value bass? What Is the company's capital structure wellght of equity on a market value basls?
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