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Dani Corporation has 5 million shares of common stock outstanding. The current share price is...

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Finance

Dani Corporation has 5 million shares of common stock outstanding. The current share price is $77, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $110 million, a coupon rate of 6 percent, and sells for 94 percent of par. The second issue has a face value of $95 million, a coupon rate of 5 percent, and sells for 106 percent of par. The first issue matures in 20 years, the second in 9 years. Both bonds make semiannual coupon payments.

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., .1616.)
b. What are the companys capital structure weights on a market value basis? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.)
a. Equity/Value
a. Debt/Value
b. Equity/Value
b. Debt/Value

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