Details of this Paper

Vedder, Inc., has 7.4 million shares of common stock outstanding.

Description

solution


Question

Vedder, Inc., has 7.4 million shares of common stock outstanding. The current share price is $62.40, and the book value per share is $5.40. Vedder 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.;Required;(a);What are the company?s capital structure weights on a book value basis? (Do not round intermediate calculations. 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. Round your answers to 4 decimal places (e.g., 32.1616).);Market value weight of equity ?;Market value weight of debt ?

 

Paper#21137 | Written in 18-Jul-2015

Price : $22
SiteLock