Ten Pins Manufacturing has 8 million shares of common stock outstanding. The current share price is $74, 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 9 percent and sells for 95 percent of par. The second issue has a face value of $60 million and a coupon rate of 10 percent and sells for 108 percent of par. The first issue matures in 24 years, the second in 8 years.
1. What are the company’s capital structure weights on a book value basis?
-equity/value:
-Debt/value:
2. What are the company’s capital structure weights on a market value basis?
-equity/value
-debt/value