Suppose that a company has 7.4 million shares of common stock outstanding. The company’s current share price is $62.40, and its book value per share is $5.40. The company also has two bond issues outstanding. The first bond issue has a face value of $71.4 million, a coupon rate of 7.4 percent, and sells for 91 percent of par. The second issue has a face value of $36.4 million, a coupon rate of 7.9 percent, and sells for 90 percent of par. The first issue matures in 18 years, the second in 10 years. What are the company’s capital structure weights on a market value basis? DO NOT COPY AND PASTE THE ANSWER FROM ELSEWHERE ON HERE!
Suppose that a company has 7.4 million shares of common stock outstanding. The company’s current share...
Hero Manufacturing has 7.4 million shares of common stock outstanding. The current share price is $88 and the book value per share is $3. The company also has two bond issues outstanding. The first bond issue has a face value of $65 million, a coupon rate of 6.2 percent and sells for 106.3 percent of par. The second issue has a face value of $45.5 million, a coupon rate of 6.7 percent and sells for 110.1 percent of par. The...
Ten Pins Manufacturing has 4 million shares of common stock outstanding. The current share price is $70, and the book value per share is $5. The company also has two bond issues outstanding. The first bond issue has a face value of $60 million and a coupon rate of 5 percent and sells for 95 percent of par. The second issue has a face value of $40 million and a coupon rate of 6 percent and sells for 104 percent...
Hero Manufacturing has 8.6 million shares of common stock outstanding. The current share price is $76 and the book value per share is $3. The company also has two bond issues outstanding. The first bond issue has a face value of $75 million, a coupon rate of 6.7 percent and sells for 108.7 percent of par. The second issue has a face value of $60.3 million, a coupon rate of 7.9 percent and sells for 112.5 percent of par. The...
Hero Manufacturing has 9.2 million shares of common stock outstanding. The current share price is $70, and the book value per share is $5. The company also has two bond issues outstanding. The first bond issue has a face value of $80 million and a coupon rate of 6.6 percent and sells for 109.9 percent of par. The second issue has a face value of $67.8 million and a coupon rate of 8.5 percent and sells for 113.7 percent of...
Ten Pins Manufacturing has 7.9 million shares of common stock outstanding. The current share price is $49, and the book value per share is $3. The company also has two bond issues outstanding. The first bond issue has a face value of $69.2 million and a coupon rate of 6.6 percent and sells for 108.7 percent of par. The second issue has a face value of $59.2 million and a coupon rate of 7.1 percent and sells for 108.1 percent...
Dinklage Corp. has 10.1 million shares of common stock outstanding. The current share price is $60, and the book value per share is $3. The company also has two bond issues outstanding. The first bond issue has a face value of $79 million, has a 7 percent coupon, and sells for 97 percent of par. The second issue has a face value of $62.62 million, has a 7 percent coupon, and sells for 100.1 percent of par. The first issue...
Filer Manufacturing has 7.3 million shares of common stock outstanding. The current share price is $43, and the book value per share is $3. The company also has two bond issues outstanding. The first bond issue has a face value of $68 million and a coupon rate of 6 percent and sells for 109.3 percent of par. The second issue has a face value of $58 million and a coupon rate of 6.5 percent and sells for 106.9 percent of...
Dinklage Corp. has 9 million shares of common stock outstanding. The current share price is $69, 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 $70 million, a coupon rate of 6 percent, and sells for 94 percent of par. The second issue has a face value of $55 million, a coupon rate of 5 percent, and sells for 106 percent of par. The...
Dinklage Corp. 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...
Dinklage Corp. has 4 million shares of common stock outstanding. The current share price is $76, 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 $105 million, a coupon rate of 5 percent, and sells for 95 percent of par. The second issue has a face value of $90 million, a coupon rate of 4 percent, and sells for 107 percent of par. The...