love123jones
love123jones
26.10.2021 • 
Business

Masterson, Inc., has 5 million shares of common stock outstanding. The current share price is $77, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $110 million, has a coupon rate of 6 percent, and sells for 94 percent of par. The second issue has a face value of $95 million, has a coupon rate of 5 percent, and sells for 106 percent of par. The first issue matures in 20 years, the second in 9 years. Both bonds make semiannual coupon payments. a. What are the company's capital structure weights on a book value basis

Solved
Show answers

Ask an AI advisor a question