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Problem $14-12$ Book Value versus Market Value $[$LO$3]$

Dani Corporation has $7$ million shares of common stock outstanding. The current share price is $$73,$ and the book value per share is $$8.$ The company also has two bond issues outstanding. The first bond issue has a face value of $$90$ million, a coupon rate of $6$ percent, and sells for $98$ percent of par. The second issue has a face value of $$75$ million, a coupon rate of $5$ percent, and sells for $110$ percent of par. The first issue matures in $22$ years, the second in $7$ 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$.,\mathrm{.}1616.)$

$\backslash$table$[[$a$.$ Equity$/$Value$,],[$a$.$ Debt$/$Value$,],[$b$.$ Equity$/$Value$,],[$b$.$ Debt$/$Value$,]]$Problem $14-12$ Book Value versus Market Value $[$LO$3]$

Dani Corporation has $7$ million shares of common stock outstanding. The current share price is $$73,$ and the book value per share is $$8.$ The company also has two bond issues outstanding. The first bond issue has a face value of $$90$ million, a coupon rate of $6$ percent, and sells for $98$ percent of par. The second issue has a face value of $$75$ million, a coupon rate of $5$ percent, and sells for $110$ percent of par. The first issue matures in $22$ years, the second in $7$ 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$.,\mathrm{.}1616.)$

$\backslash$table$[[$a$.$ Equity$/$Value$,],[$a$.$ Debt$/$Value$,],[$b$.$ Equity$/$Value$,],[$b$.$ Debt$/$Value$,]]$

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