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Q13 please 12. Book Value versus Market Value (LO3] Dinklage Corp. has 8 million...

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Accounting

imageQ13 please

12. Book Value versus Market Value (LO3] Dinklage Corp. has 8 million shares of common stock outstanding. The current share price is $73, and the value per book share is $7. The company also has two bond issues outstanding. The first bond issue has a face value of $85 million, a 7 percent and sells of The second issue has a value of $50 million, an percent coupon, and sells for issue 108 percent of par. The first matures in 21 years, the second in 6 years. 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? c. Which are more relevant, the book or market value weights? Why? 13. Calculating the WACC [LO3] In Problem 12, suppose the most recent dividend was $3.90 and the dividend growth rate is 6 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 35 percent. What is the company's WACC

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