subject
Mathematics, 26.11.2019 22:31 elenasoaita

Bonaime, inc., has 7.2 million shares of common stock outstanding. the current share price is $62.20, and the book value per share is $5.20. the company also has two bond issues outstanding. the first bond issue has a face value of $71.2 million, a coupon rate of 7.2 percent, and sells for 92 percent of par. the second issue has a face value of $36.2 million, a coupon rate of 7.7 percent, and sells for 91 percent of par. the first issue matures in 22 years, the second in 14 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., 32.1616.) book value weight of equity book value weight of debt 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., 32.1616.) market value weight of equity market value weight of debt c. which are more relevant, the book or market value weights?

ansver
Answers: 2

Another question on Mathematics

question
Mathematics, 21.06.2019 15:00
Which statement best describes the polynomial
Answers: 1
question
Mathematics, 21.06.2019 15:30
Two blends of tea are mixed to make a blend that will be sold at the fair. black tea sells for $2.20 per pound and orange pekoe tea sells for $3.00 per pound. how much of each should be used to obtain a 4lb blend selling for $2.50 per pound?
Answers: 1
question
Mathematics, 21.06.2019 19:00
Jack did 3/5 of all problems on his weekend homework before sunday. on sunday he solved 1/3 of what was left and the last 4 problems. how many problems were assigned for the weekend?
Answers: 1
question
Mathematics, 21.06.2019 23:00
Acarton of juice contains 64 ounces miss wilson bought six cartons of juice how many ounces of juice did she buy
Answers: 2
You know the right answer?
Bonaime, inc., has 7.2 million shares of common stock outstanding. the current share price is $62.20...
Questions
question
Mathematics, 03.10.2019 12:20
question
Mathematics, 03.10.2019 12:20
Questions on the website: 13722361