Bonaime inc has 72 million shares of common stock


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? (Rounded 4 decimal places)

b. What are the company's capital structure weights on a market value basis? (Rounded 4 decimal places)

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Finance Basics: Bonaime inc has 72 million shares of common stock
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