Company capital structure weights on market value basis

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Bonaime, Inc., has 6.2 million shares of common stock outstanding. The current share price is $61.20, and the book value per share is $4.20. The company also has two bond issues outstanding. The first bond issue has a face value of $70.2 million, a coupon rate of 7.2 percent, and sells for 97 percent of par. The second issue has a face value of $35.2 million, a coupon rate of 6.7 percent, and sells for 96 percent of par. The first issue matures in 22 years, the second in 14 years. a. What are the company’s capital structure weights on a book value basis? Book value weight of equity? Book value weight of debt? What are the company’s capital structure weights on a market value basis? Market value weight of equity? Market value weight of debt?

Reference no: EM131566050

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