- Cost of Capital Saved Masterson, Inc., has 41 million shares of common stock outstanding. The current share price is $84, and the book value per share is $11. The company also has two bond issues outstanding. The first bond issue has a face value of $70 million, has a coupon rate of 5.1 percent, and sells for 98 percent of par. The second issue has a face value of $50 million, has a coupon rate of 5.60 percent, and sells for 108 percent of par. The first issue matures in 20 years, the second in 12 years. 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.) c. Which are more relevant, the book or market value weights? a. Weight of equity Weight of debt b. Weight of equity Weight of debt Mero rolovat st of Capital Saved Hankins, Inc., is considering a project that will result in initial aftertax cash savings of $4.3 million at the end of the first year, and these savings will grow at a rate of 1.9 percent per year indefinitely. The firm has a target debt-equity ratio of 40, a cost of equity of 10.8 percent, and an aftertax cost of debt of 3.2 percent. The cost saving proposal is somewhat riskier than the usual project the firm undertakes; management uses the subjective approach and applies an adjustment factor of +2 percent to the cost of capital for such risky projects. a. Calculate the discount rate for the project. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places. e... 32.16.) b. What is the maximum cost the company would be willing to pay for this project? (Do not round intermediate calculations and enter your answer in dollars, not millions rounded to 2 decimal places, e.g. 1,234,567.89.) a Discount rate b. Maximum cost % MacBook