Please help with correct answer asap. SubmitCheck my workDinklage Corp. has 121 mllion shares of common stock outstanding. The current shareprice Is $49 and the book value per share Is $4. The company also has two bond Issuesoutstanding The first bond Issue has a face value of $92 million, has a 9 percentCoupon, and sells for 96 percent of par. The second Issue has a face value of $7744million, has a9 percent coupon, and sells for 99 percent of par. The first Issue matures In10 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?

Weight of common stock : it means the ratio of equity and total capital used by the firm whether on…

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?

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?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

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Dani Corporation has 5.5 million shares of common stock outstanding. The current share price is $83, 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 rate of 5.5 percent, and sells for 109 percent of par. The second issue has a face value of $45 million, a coupon rate of 5.8 percent, and sells for 108 percent of par. The first issue matures in 21 years, the second in 6 years. Both bonds make semiannual coupon payments. a. 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., .3216.) b. 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., .3216.) a. Equity/Value a. Debt/Value b. Equity/Value b. Debt/Value c. Which are more relevant, the book or market value weights? O…
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