Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $78, and the book value per share is $9. The company also has two bond issues outstanding. The first bond issue has a face value of $115 million, a coupon rate of 7 percent, and sells for 93 percent of par. The second issue has a face value of $100 million, a coupon rate of 6 percent, and sells for 105 percent of par. The first issue matures in 21 years, the second in 8 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 company's capital structure weights on a market value basis? (Do not round intermediate calculations and round your answers to 4 decimal places, e. g.,.1616.)
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $78, and the book value per share is $9. The ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
A set of financial states made every 3 months is called a.
Answers (1)
Why is it difficult to pay off debt and how can debt payments work against consumers?
Answers (1)
A computerized spreadsheet programs is useful for a. sorting and charting data from surveys b. conducting primary research c. primary telephone surveys d. keeping information information confidential
Answers (1)
Lucky lou has just won the lottery and will receive an annual payment of $100,000 every year for the next 20 years. if the annual interest rate is 8%, what is the present value of the winnings?
Answers (1)
Ne of the most common mistakes new business owners make is A. not establishing a good relationship with a financial institution. B. getting advice from a consultant. C. setting unrealistic goals. D. always knowing what the customer wants.
Answers (1)
New Questions in Business
The culture of UPS places service to the customer among the company's highest business objectives, which is reflected in their use of information systems to enable customer tracking of their packages.
Answers (1)
Employers bond employees who handle cash receipts because fidelity bonds reduce the possibility of employing dishonest individuals and Deter dishonesty by making employees aware that insurance companies may investigate and prosecute dishonest acts.
Answers (1)
1. A complaint of sexual harassment by a part-time worker in a hardware business was upheld when the Tribunal found that the employer had failed to take sufficient action in relation to the employee's report of inappropriate behaviour.
Answers (1)
Suppose that the government sets a price floor for milk that is above the competitive equilibrium price With the price floor, consumers are willing to purchase the quantity indicated where the price floor intersects the With the price floor, the
Answers (1)
Choose the best revision of the previous sentence. Because many executives have access to company jets boards of directors have a responsibility to ensure that shareholders are not footing the bill for personal travel.
Answers (1)