Business, 12.10.2021 02:50 juliannabartra

Hero Manufacturing has 7.6 million shares of common stock outstanding. The current share price is $67 and the book value per share is $4. The company also has two bond issues outstanding, both with semiannual coupons. The first bond issue has a face value of $80 million and a coupon rate of 6.8 percent and sells for 109.5 percent of par. The second issue has a face value of $65 million and a coupon rate of 7.1 percent and sells for 112.4 percent of par. The first issue matures in 9 years, the second in 25 years. a. What are the company's capital structure weights on a book value basis?
b. What are the company's capital structure weights on a market value basis?

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Hero Manufacturing has 7.6 million shares of common stock outstanding. The current share price is $6...