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Home Furniture Inc. has 8 million shares of common stock outstanding. The current share price...

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Accounting

Home Furniture Inc. has 8 million shares of common stock outstanding. The current share price is $73, 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 $85 million and a 7% coupon, and sells for 97% of par. The second issue has a face value of $50 million, has an 8% coupon, and sells for 108% of par. The issue matures in 21 years, the second in six years. The weight of the companys debt based on market value is

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