Company capital structure weights on book value basis

Assignment Help Financial Management

Reference no: EM131898703

Bonaime, Inc., has 6.9 million shares of common stock outstanding. The current share price is $61.90, and the book value per share is $4.90. The company also has two bond issues outstanding. The first bond issue has a face value of $70.9 million, a coupon rate of 7.4 percent, and sells for 93.5 percent of par. The second issue has a face value of $35.9 million, a coupon rate of 7.4 percent, and sells for 92.5 percent of par. The first issue matures in 18 years, the second in 10 years.

1) 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.)

Book value weight of equity?

Book value weight of debt?

2) 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., 32.1616.)

Market value weight of equity?

Market value weight of debt?

Reference no: EM131898703

Questions Cloud

Find the market value of bonds using semiannual analysis : Cox Media Corporation pays a coupon rate of 9 percent on debentures that are due in 25 years. Find the market value of the bonds using semiannual analysis

Compute the fair value of chooser option which expires : Compute the fair value of a chooser option which expires after n=10 periods.

Calculate the approximate price change for this bond : Calculate the approximate price change for this bond if interest rates decline 110 basis points.

What value should you use for your before-tax rate of return : what value should you use for your before-tax rate of return?

Company capital structure weights on book value basis : Bonaime, Inc., has 6.9 million shares of common stock outstanding. What are the company’s capital structure weights on a book value basis?

What is the firm weighted average cost of capital : What is the firm’s weighted average cost of capital (WACC2) if it has to issue new common stock?

Same exercise price and expiration date as the call option : What is the value of a put option written on the stock with the same exercise price and expiration date as the call option?

The yield to maturity on the bonds : The company has run into hard times and the yield to maturity on the bonds has increased to 14%. What is the price of the bond now?

Is there covered interest arbitrage opportunity : Is there a covered interest arbitrage opportunity? What would be her final total US dollar amount?

User Account

All Pages