subject
Business, 07.08.2019 01:30 kateykob01

Erna corp. has 7 million shares of common stock outstanding. the current share price is $73, and the book value per share is $8. erna corp. also has two bond issues outstanding. the first bond issue has a face value of $75 million, has a coupon of 8 percent, and sells for 98 percent of par. the second issue has a face value of $55 million, has a coupon of 9 percent, and sells for 107 percent of par. the first issue matures in 23 years, the second in 7 years. a. 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 b. what are erna’s capital structure weights on a market value basis

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 02:20
The following information is available for jase company: market price per share of common stock $25.00 earnings per share on common stock $1.25 which of the following statements is correct? a. the price-earnings ratio is 20 and a share of common stock was selling for 20 times the amount of earnings per share at the end of the year. b. the market price per share and the earnings per share are not statistically related to each other. c. the price-earnings ratio is 5% and a share of common stock was selling for 5% more than the amount of earnings per share at the end of the year. d. the price-earnings ratio is 10 and a share of common stock was selling for 125 times the amount of earnings per share at the end of the year.
Answers: 1
question
Business, 22.06.2019 04:30
The lee family is looking to buy a house in one of two suburban areas just outside of a major city, and air quality is a top priority for them. overall air quality is calculated by taking measures in 100 locations within each suburb and then calculating a measure of central tendency. in one suburb, there is a major bus station that creates very poor air quality at its location but has no impact in the surrounding parts of the suburb. in this situation, which measure of overall suburb air quality would be most useful?
Answers: 3
question
Business, 22.06.2019 11:40
Vendors provide restaurants with what? o a. cooked items ob. raw materials oc. furniture od. menu recipes
Answers: 1
question
Business, 22.06.2019 15:10
Paddock pools constructed a swimming pool and deck for the jensens' home. paddock installed the wrong trim on the pool. it would cost $2800 to change the trim-one-fifth of the total cost of the pool. the jensens refuse to pay anything for the pool. the paddock's best defense is: (a) duress (b) substanial performance (c)mistake (d) failure of conditions
Answers: 3
You know the right answer?
Erna corp. has 7 million shares of common stock outstanding. the current share price is $73, and the...
Questions
question
Mathematics, 14.05.2021 17:30
question
Mathematics, 14.05.2021 17:30
question
English, 14.05.2021 17:30
Questions on the website: 13722361