Capital structure weights on book value basis

Assignment Help Financial Management

Reference no: EM132001697

Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $85, 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 $65 million, a coupon of 8 percent, and sells for 95 percent of par. The second issue has a face value of $40 million, a coupon of 9 percent, and sells for 108 percent of par. The first issue matures in 23 years, the second in 5 years.

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., 32.1616.)

Equity/Value

Debt/Value

Reference no: EM132001697

Questions Cloud

What are the after-tax proceeds from the sale : what are the after-tax proceeds from the sale, assuming the marginal tax rate is 35 percent.

Assuming the international fisher effect holds : What is the one yer forecast of the U.S dollar(USD) per Euro spot exchange rate, assuming the international Fisher effect holds?

Annual costs of the econo-cool and luxury air models : What are the equivalent annual costs of the Econo-cool and Luxury Air models? Which model is more cost effective?

What was the accrued interest : What was the accrued interest? What was the market price (quoted on the Wall Street Journal)?

Capital structure weights on book value basis : What are the company's capital structure weights on a book value basis?

Expected holding period return for investor holding firm : What is the expected holding period return (HPR) for an investor holding firm A's stock over the next twelve months?

What would you do if the two year t-bond : The interest rate on a 1-year T-bond is 4.00% and that on a 2-year T-bond is 5.90%. What would you do if the 2 year T-bond was at 5.7% not 5.9%?

What is the expected holding period return : what is the expected holding period return (HPR) for an investor holding firm A's stock over the next twelve months?

What is the net present value of the project in given issue : Molly is considering a project with cash inflows of $811, $924, $638, and $510 over the next four years, respectively. The relevant discount rate is 11.2.

User Account

All Pages