What are the companys capital structure weights on a book

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Regions, Inc., has 6.7 million shares of common stock outstanding. The current share price is $61.70, and the book value per share is $4.7. Regions also has two bond issues outstanding. The first bond issue has a face value of $70.7 million, a 7.2 percent coupon, and sells for 94.5 percent of par. The second issue has a face value of $35.7 million, a 7.2 percent coupon, and sells for 93.5 percent of par. The first issue matures in 22 years, the second in 14 years.

Required:

(a) What are the company's capital structure weights on a book value basis?

 

Reference no: EM13288010

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