What are company capital structure weights on book value

Assignment Help Financial Management

Reference no: EM131063960

Dinklage Corp. has 7 million shares of common stock outstanding. The current share price is $79, and the book value per share is $6. The company also has two bond issues outstanding. The first bond issue has a face value of $70 million, a coupon of 8 percent, and sells for 94 percent of par. The second issue has a face value of $40 million, a coupon of 9 percent, and sells for 107 percent of par. The first issue matures in 23 years, the second in 6 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 ?

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., 32.1616.)

Equity/Value ?

Debt/Value ?

Reference no: EM131063960

Questions Cloud

Compare and sort materials of different composition : Reflect on your past experiences in science classes. You can refer back to a specific grade level or teacher, as well as multiple grade levels or teachers. Which were the most exciting science units you were exposed to? Which were the most boring ..

Three-month european call option on the market index : An investor purchases a three-month European call option on the market index with an exercise price of $1000 for a premium of $10. After three months, the market index spot price is $1011 and the investor’s position is closed. Find the rate of return..

Analyze the profit and loss possibilities inherent : 1. To analyze the profit and loss possibilities inherent in the option investment strategies, please perform the following analyses for call and put options on Lotus's common stock that mature in February 1994 and that have an exercise price of $..

Determine its cost of debt-pretax cost of debt : Drogo, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 16 years to maturity that is quoted at 105 percent of face value. The issue makes semiannual payments and has an embedded cost of 10 percent annually. Wh..

What are company capital structure weights on book value : Dinklage Corp. has 7 million shares of common stock outstanding. The current share price is $79, and the book value per share is $6. The company also has two bond issues outstanding. What are the company's capital structure weights on a book value ba..

Ratio of the macaulay duration to the macaulay convexity : Your company has a liability, which calls for a single payment of 1000 due in ten years, and it funds it with a one-year zero-coupon bond with a price of 200, and a twenty-year zero coupon bond with a price of 800. Current continuously compounded int..

Audit procedure for each of the account balances : Required: Identify one substantive audit procedure for each of the account balances above that will provide sufficient appropriate audit evidence regarding the accuracy of that account balance

Find the probability generating function : MAST20004 Probability - Find MV(t), the moment generating function of V , and state the values of t for which it is defined and find PY(z), the probability generating function of Y, and state the values of z for which it is defined.

Ethical leadership and analyzes the construction : Competency 325.1.4: Leadership Ethics - The graduate identifies influences on ethical leadership and analyzes the construction of a code of ethics. Competency 328.2.1: Social Responsibility - The graduate assesses and develops policies, practices..

User Account

All Pages