Rooster Inc has 9 million shares of common stock outstanding. The current share price is $52 and the book value per share is $4. Rooster also has two bond issues outstanding. The first bond issue has a face value of $80 million, has an 8 percent coupon and sells for 104 percent of par. The second issue has a face value of $50 million, has a 7.5 percent coupon, and sells for 102 percent of par. The first issue matures in 10 years, the second in 6 years. Ignore tax.
Required
A) What are Rooster’s capital structure weights on a book value basis?
B) What are Rooster’s capital structure weights on a market value basis?