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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?
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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 agoRelated Solutions
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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
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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
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par. The first issue...
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