Vedder, Inc., has 5 million shares of common stock outstanding. The current share price is $73,...

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Vedder, Inc., has 5 million shares of common stock outstanding.The current share price is $73, and the book value per share is $9.Vedder also has two bond issues outstanding. The first bond issuehas a face value of $60 million, a coupon rate of 7 percent, andsells for 98 percent of par. The second issue has a face value of$40 million, a coupon rate of 6.5 percent, and sells for 97 percentof par. The first issue matures in 20 years, the second in 12years. Required: (a) What are the company’s capital structureweights on a book value basis? (Do not round intermediatecalculations. Round your answers to 4 decimal places (e.g.,32.1616).) Book value weight of equity Book value weight of debt(b) What are the company’s capital structure weights on a marketvalue basis? (Do not round intermediate calculations. Round youranswers to 4 decimal places (e.g., 32.1616).) Market value weightof equity Market value weight of debt

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Answer a Debt Bond 1 Book Value of Bond 1 60000000 Bond 2 Book Value of Bond 2 40000000 Book Value of Debt Book Value of Bond 1 Book Value of Bond 2 Book Value of Debt 60000000 40000000 Book Value of Debt 100000000 Equity Shares Outstanding 5000000 Book Value per share 900 Book Value of Equity Shares Outstanding Book Value per share Book Value of See Answer

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Vedder, Inc., has 5 million shares of common stock outstanding.The current share price is $73, and the book value per share is $9.Vedder also has two bond issues outstanding. The first bond issuehas a face value of $60 million, a coupon rate of 7 percent, andsells for 98 percent of par. The second issue has a face value of$40 million, a coupon rate of 6.5 percent, and sells for 97 percentof par. The first issue matures in 20 years, the second in 12years. Required: (a) What are the company’s capital structureweights on a book value basis? (Do not round intermediatecalculations. Round your answers to 4 decimal places (e.g.,32.1616).) Book value weight of equity Book value weight of debt(b) What are the company’s capital structure weights on a marketvalue basis? (Do not round intermediate calculations. Round youranswers to 4 decimal places (e.g., 32.1616).) Market value weightof equity Market value weight of debt