Solution-What are the company capital structure weights on

What are the company capital structure weights on book value

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Masterson, Inc., has 6 million shares of common stock outstanding. The current share price is $66, and the book value per share is $5. The company also has two bond issues outstanding. The ?rst bond issue has a face value of $55 million, has a coupon rate of 6 percent, and sells for 91 percent of par. The second issue has a face value of $40 million, has a coupon rate of 5 percent. and sells for 103 percent of par. The ?rst issue matures in 21 years. the second in 6 years. Both bonds make semiannual coupon payments.

Problem 1: What are the company's capital structure weights on a book value basis?

Reference no: EM132758005

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What are the company capital structure weights on book value

Reference no: EM132758005

Reference no: EM132758005

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