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Hero Manufacturing has 7 million shares of common stock outstanding. The current share price is $86 and the book value per share is $5. The company also has two bond issues outstanding, both with semiannual coupons. The first bond issue has a face value $70 million and a coupon of 9 percent and sells for 96 percent of par. The second issue has a face value of $45 million and a coupon of 10 percent and sells for 104 percent of par. The first issue matures in 24 years, the second in 6 years. a. What are the company's capital structure weights on a book value basis? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 1616.) b. What are the company's capital structure weights on a market value basis? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g. 1616.) a. Equity/Value Debt/Value b. Equity Value Debt/Value
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