a
Adequate information:
Common stock outstanding
Book value per share
Book
Coupon rate of Bond I
Face value of Bond I
Selling rate of Bond I
Price of Bond I
Term duration of Bond I
Number of compounding periods in a year
Book value of Bond II
Coupon rate of Bond II
Face value of Bond II
Selling rate of Bond II
Price of Bond II
Term duration of Bond II
Number of compounding periods in a year
To compute: Capital structure weights on book value basis
Introduction: The Capital structure weights refers to the weightage or proportion of capital sources.
b
Adequate information:
Current price per share
Selling rate of Bond I
Selling rate of Bond II
To compute: Capital structure weights on market value basis
Introduction: The Capital structure weights refers to the weightage or proportion of capital sources.
c
To compute: The more relevant between book value or market value weights

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Chapter 13 Solutions
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