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Business, 19.10.2021 16:10 ochoamiguel46

Dinklage Corp. has 9 million shares of common stock outstanding. The current share price is $81, and the book value per share is $7. The company also has two bond issues outstanding. The first bond issue has a face value of $130 million, a coupon rate of 6 percent, and sells for 92 percent of par. The second issue has a face value of $115 million, a coupon rate of 5 percent, and sells for 103 percent of par. The first issue matures in 24 years, the second in 10 years. Both bonds make semiannual coupon payments. 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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Dinklage Corp. has 9 million shares of common stock outstanding. The current share price is $81, and...

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