Dinklage Corp. has 10.1 million shares of common stock outstanding. The current share price is $53,...

Dinklage Corp. has 10.1 million shares of common stock outstanding. The current share price is $53, 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 $83 million, has a 7 percent coupon, and sells for 91 percent of par. The second issue has a face value of $60.6 million, has a 7 percent coupon, and sells for 93.9 percent of par. The first issue matures in 9 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 weight of debt on a book value basis? What is the company's capital structure weight of equity on a market value basis? What is the company's capital structure weight of debt on a market value basis?

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE.

ALL WEIGHTS ARE IN DECIMALS AND TAKEN TILL 4 DECIMALS.

jeff jeffy answered 1 year ago

Dinklage Corp. has 4 million shares of common stock outstanding. The current share price is $70,...

Dinklage Corp. has 4 million shares of common stock outstanding. The current share price is $70, and the book value per share is $9. The company also has two bond issues outstanding. The first bond issue has a face value of $75 million, a coupon rate of 7 percent, and sells for 95 percent of par. The second issue has a face value of $60 million, a coupon rate of 6 percent, and sells for 107 percent of par. The...

Dinklage Corp. has 8 million shares of common stock outstanding. The current share price is $87,...

Dinklage Corp. has 8 million shares of common stock outstanding. The current share price is $87, and the book value per share is $6. The company also has two bond issues outstanding. The first bond issue has a face value of $75 million, a coupon of 10 percent, and sells for 97 percent of par. The second issue has a face value of $50 million, a coupon of 11 percent, and sells for 105 percent of par. The first issue...

Dinklage Corp. has 8 million shares of common stock outstanding. The current share price is $74,...

Dinklage Corp. has 8 million shares of common stock outstanding. The current share price is $74, and the book value per share is $5. The company also has two bond issues outstanding. The first bond issue has a face value of $80 million, a coupon of 9 percent, and sells for 95 percent of par. The second issue has a face value of $60 million, a coupon of 10 percent, and sells for 108 percent of par. The first issue...

Dinklage Corp. has 8 million shares of common stock outstanding. The current share price is $74,...

Dinklage Corp. has 8 million shares of common stock outstanding. The current share price is $74, and the book value per share is $5. The company also has two bond issues outstanding. The first bond issue has a face value of $80 million, a coupon of 9 percent, and sells for 95 percent of par. The second issue has a face value of $60 million, a coupon of 10 percent, and sells for 108 percent of par. The first issue...

Dinklage Corp. has 4 million shares of common stock outstanding. The current share price is $83,...

Dinklage Corp. has 4 million shares of common stock outstanding. The current share price is $83, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $90 million, a coupon rate of 6 percent, and sells for 98 percent of par. The second issue has a face value of $60 million, a coupon rate of 7 percent, and sells for 106 percent of par. The...

Dinklage Corp. has 4 million shares of common stock outstanding. The current share price is $70,...

Dinklage Corp. has 4 million shares of common stock outstanding. The current share price is $70, and the book value per share is $9. The company also has two bond issues outstanding. The first bond issue has a face value of $75 million, a coupon rate of 7 percent, and sells for 95 percent of par. The second issue has a face value of $60 million, a coupon rate of 6 percent, and sells for 107 percent of par. The...

Dinklage Corp. has 5 million shares of common stock outstanding. The current share price is $71,...

Dinklage Corp. has 5 million shares of common stock outstanding. The current share price is $71, and the book value per share is $10. The company also has two bond issues outstanding. The first bond issue has a face value of $80 million, a coupon rate of 4 percent, and sells for 96 percent of par. The second issue has a face value of $65 million, a coupon rate of 3 percent, and sells for 108 percent of par. The...

Dinklage Corp. has 9 million shares of common stock outstanding. The current share price is $75,...

Dinklage Corp. has 9 million shares of common stock outstanding. The current share price is $75, and the book value per share is $6. The company also has two bond issues outstanding. The first bond issue has a face value of $85 million, a coupon of 10 percent, and sells for 96 percent of par. The second issue has a face value of $65 million, a coupon of 11 percent, and sells for 109 percent of par. The first issue...

Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $72,...

Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $72, 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 $70 million, a coupon of 7 percent, and sells for 97 percent of par. The second issue has a face value of $50 million, a coupon of 8 percent, and sells for 106 percent of par. The first issue...

Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $89,...

Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $89, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $85 million, a coupon of 6 percent, and sells for 96 percent of par. The second issue has a face value of $60 million, a coupon of 7 percent, and sells for 109 percent of par. The first issue...

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Dinklage Corp. has 10.1 million shares of common stock outstanding. The current share price is $53,...

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