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Erna Corp. has 5 million shares of common stock ou...

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Erna Corp. has 5 million shares of common stock outstanding. The current share price is $71, and the book value per share is $6. Erna Corp. also has two bond issues outstanding. The first bond issue has a face value of $65 million, has a coupon of 6 percent, and sells for 96 percent of par. The second issue has a face value of $45 million, has a coupon of 7 percent, and sells for 105 percent of par. The first issue matures in 21 years, the second in 5 years. What are Erna?s capital structure weights on a book value basis? (Round your answer to 4 decimal places. (e.g., 32.1616)) Equity/Value: Debt/Value: What are Erna?s capital structure weights on a market value basis? (Round your answer to 4 decimal places. (e.g., 32.1616)) Equity/Value: Debt/Value:

 

Paper#7291 | Written in 18-Jul-2015

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